ECC withdraws customs duty on cotton yarn import
Last updated on: 14 April,2021 10:13 pm
ECC also approves Rs11.7b for mother & child hospitals in Punjab
ISLAMABAD (Dunya News) – The Economic Coordination Committee (ECC) of the Cabinet Wednesday withdrew Customs Duty on import of cotton yarn till June 30,2021, to ensure smooth supply of the commodity to the value-added industry, while bridging the gap between domestic production and overall demand for the inputs.
The summary for withdrawal of Customs Duty on import of Cotton Yarns under PCT 5205, 5206 and 5207 was presented by Secretary, Ministry of Commerce before the cabinet committee, the meeting of which was chaired by the Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar.
Among others the meeting was attended by Federal Minister for Planning, Development and Special Initiatives, Asad Umar; Federal Minister for Privatization, Muhammad Mian Soomro; Federal Minister for Maritime Affairs, Ali Haider Zaidi; Federal Minister for Energy, Omar Ayub Khan; Federal Minister for National Food Security and Research, Syed Fakhar Imam; Adviser to the PM for Institutional Reforms and Austerity, Dr. Ishrat Hussain; SAPM on Revenue, Dr. Waqar Masood; SAPM on Power and Petroleum, Tabish Gauhar; Federal Secretaries, senior representatives of provincial governments, Chairman BOI and other senior officers.
The State Bank of Pakistan Governor joined through a video link, according to press statement issued by the Finance Ministry.
Meanwhile, Power Division presented a summary regarding waiver of minimum 66 percent Take-or-Pay commitment in Power Purchase Agreement(s) (PPA) & Gas Supply Agreement(s) (GSA) of three RLNG based Public Sector Power Plants namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant and Haveli Bahadur Shah Power Plant.
These amendments would envisage submission of a Monthly Production Plan (MPP) as a binding on the Power Purchaser and the Power Seller wherein the Power Purchaser shall be entitled to submit demand requirement as needed, at least seventy five days before the start of each such month, which would be finalized by the System Operator and Operating Committee under the PPA.
The concept of a Monthly Delivery Plan (MDP) for deliveries of Gas under the GSA, had been paired with the Monthly Schedule as provided under PPA and the MPP would come into effect from the year 2022.
After seeking input from relevant stakeholders, the committee approved the summary and appreciated the concept of Monthly Production Plan (MPP) as a cost-effective solution, enabling the Power and Gas purchasers to make requisite purchases in line with actual requirements instead of following a fixed arrangement.
The power division also presented another summary proposing amendment to the Facilitation Agreement and Amendment to the GoP Guarantee Agreement with KAPCO.
It included the proposal that the project may be withdrawn from the Privatization Commission and entrusted to Private Power and Infrastructure Board (PPIB).
After due deliberation, the committee approved the summary, in principle, subject to formal vetting by the Law Division, the statement added.
The ECC also approved a Technical Supplementary Grant for Finance division amounting to Rs 11.7 billion as the share of the federal government for the establishment of 4 mother and child care hospitals in Punjab.