ECC increases diesel imports’ maximum Premium
The ECC authorized a maximum cap of US$ 16.75/BBL for diesel imports for the month of November 2022, to enable OMCs other than PSO to import diesel.
Senator Mohammad Ishaq Dar, who is the Federal Minister for Finance and Revenue, was in charge of the meeting of the Economic Coordination Committee (ECC) at the Finance Division.
Ministry of Energy, Petroleum Division provided a summary of the High Speed Diesel (HSD)/Gas Oil premium and reported that the demand for HSD has significantly increased due to the ongoing sowing season and the country’s reconstruction efforts following the floods.Higher growth in HSD sale pushes PSO’s market share up
Regarding reimbursement of premiums to importers to ensure a continuous and sustainable supply of HSD in the country, the ECC authorized a maximum cap of US$ 16.75/BBL for the month of November 2022, on premiums on HSD for importing OMCs other than PSO.
ECC also reviewed the summary of the Ministry of Energy, Power Division on standardized security package agreements for large-scale solar PV projects for substitution of expensive imported fossil fuels-based power generation under the framework and approved the summary with the exception of the proposed special payment mechanism and quarterly indexation.
Further, the ECC authorized the Boards of AEDB and CPPA-G to approve any project-specific amendments to the IA (Implementation Agreement) and EPA (Energy Purchase Agreement) that are required to comply with NEPRA’s Tariff Approval and/or Generation License for specific projects, provided that such amendments do not increase GOP obligations as envisioned and stipulated in the standard Security Package Documents.
It was disclosed that the Government of Pakistan intends to develop large-scale solar PV projects for substitution of existing imported fossil fuel-based thermal power plants within their technical and contractual limitations through the private sector on a Built Own Operate Transfer (BOOT) basis.
The ECC approved the Finance Division’s proposal to revise and rename the Prime Minister’s Kamyab Jawan- Youth Entrepreneurship Scheme (PMKJ-YES) as the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS) in order to make it more purposeful and advantageous for small businesses and agriculture. New components of microloans without interest and agriculture loans have been added to the scheme.
The Strategic Plan Division outlined the transfer of Heavy Electrical Complex (HEC) and State Engineering Corporation (SEC) Land to HMC and HMC-3.ECC allows revising premium benchmark for HSD Pricing
It was disclosed that a decision is required to resolve HEC’s land issue so that its privatization can be completed. The ECC approved, after deliberation, that the lands under consideration may be transferred from State Engineering Corporation and HEC to HMC and HMC-3, along with liabilities and subject to payment of requisite fees.
ECC approved the summary of the Ministry of National Health Services, Regulations for technical Supplementary Grant as rupee cover for the remaining amount of ADB Financing Agreement of USD 12,20 million equivalent to Pak Rupee 2,928 million (out of USD 500 million committed by ADB), for procurement of COVID-19 vaccine and discharging liability of COVID-19 campaign during the current fiscal year 2022-23.
