ECC approves 190pc hike in gas prices
Last updated on: 26 June,2019 10:05 pm
The hike in gas tariff was among the conditions set by the IMF for a bailout package.
ISLAMABAD (Dunya News) – The Economic Coordination Committee (ECC) on Wednesday approved 190 percent hike in gas prices for domestic consumers and 31 percent for all other categories.
The meeting was presided over by Advisor to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh.
According to sources, the revised gas prices, which will become effective on July 1, will help the government pocket an additional revenue of Rs500 billion.
Sources said the government will again review gas prices in December.
The hike in gas tariff was among the conditions set by the International Monetary Fund (IMF) for a bailout package.
In order to promote Maritime Sector and strengthen the shipping industry in the country, the Committee approved the proposal of Ministry of Maritime Affairs to extend the existing tax incentives to the shipping sector from 2020-2030, subject to vetting by Law Division.
The Power Division briefed the Committee about the cash and non-cash settlement for power sector. The ECC decided that Industrial Support Package (ISP) and AJK power sector subsidy would be adjusted against the outstanding loan of government of Pakistan from power sector entity.
It also approved the proposal of Power Division to provide additional power supply for three hours to the tube-wells, domestic and commercial consumers of Balochistan province for initial period of three months. In this regard, an amount of 9 billion was approved for three months which is to be provided in three tranches.
The Committee would review the performance of QESCO on monthly basis whether the recovery drive against the power sector defaulters is producing the desired results.
The ECC decided to give a deadline of three months to Power Division to resolve the issue of recovery from around thirty thousand eight tube-wells of Baluchistan. The Committee directed Law Division to accelerate the recovery campaign against the defaulters and submit a report to ECC on monthly basis.
The ECC approved Supplementary and Technical Supplementary Grants of various Ministries/Divisions.