ECC Approves Massive Increase in Gas Prices for Consumers
Staff Report
The Economic Coordination Committee (ECC) has approved a massive increase in gas prices for consumers effective from November 1, 2023.
Dr. Shamshad Akhtar, the Federal Minister for Finance, Revenue, and Economic Affairs, presided over the ECC meeting.
During the meeting, a summary from the Ministry of Energy (Petroleum Division) was presented concerning the revision of natural gas sale pricing for the fiscal year 2023-24.
After thorough discussion and deliberation, the ECC approved the summary in accordance with the tariff schedule provided by the Ministry, with the new pricing taking effect from November 1, 2023, instead of the previously proposed date of October 1, 2023.
The meeting also covered various agenda items and summaries submitted by different ministries, including Industries and Production, Energy and Petroleum, National Food Security and Research, Earthquake Reconstruction and Rehabilitation Authority (ERRA), and Finance.
The Ministry of Industries and Production presented a summary outlining measures to fulfill the urea requirements for the Rabi season 2023-24.
The ECC discussed this proposal and authorized the immediate import of 200,000 metric tons of urea fertilizers.
It was emphasized that a consistent gas supply for the fertilizer industry must be ensured, and the provinces were encouraged to actively participate in bearing the importation cost.
Additionally, the ECC approved a summary from the Ministry of National Food Security and Research, endorsing the cost-effective import of 1.00 million metric tons of milling wheat for the year 2023-24 through TCP under an open tendering process to maintain strategic reserves.
The ECC also supported the proposal to encourage the private sector to import specified milling wheat, complying with the criteria outlined in the import policy order 2022. The ECC instructed the Ministry to conduct a third-party verification of the wheat stock in the country.
The ECC deliberated on a summary submitted by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) seeking approval for a Technical Supplementary Grant of Rs. 484 million to cover critical expenses related to the salaries and allowances of 415 contract and project employees from July 2023 onwards. Govt to Increase Gas Prices for Elite
The ECC directed the Ministry of Planning, Development, and Special Initiatives to identify savings to finance the salaries of ERRA employees.
Furthermore, the ECC considered and approved a summary from the Ministry of Finance, which proposed the establishment of the National Credit Guarantee Company Limited to support the credit enhancement of Small and Medium Enterprises (SMEs).
