NHA granted moratorium to resolve over Rs 2 trillion loans
The Economic Coordination Committee (ECC) of the Cabinet has granted a one-month moratorium to NHA to work out details for a financially viable solution of a sick loan of Rs 2.2 trillion.
Communication Division requested ECC to convert National Highways Authority loans into Government Grant or granted a waive-off for a much-needed fiscal space. The cabinet body also discussed remodeling NHA as a self-sustaining and performance-based organization.
The ECC was directed to constitute a sub-committee under the minister’s Chairmanship for Planning, Development, and Special Initiatives. The committee would comprise SAPM Nadeem Babar and secretaries finance, communications, and Ali Zaidi Maritime affairs.
A sub-committee will prepare a holistic proposal suggesting a revenue generation roadmap for NHA within a month. The ECC granted NHA a one-month moratorium to work out details and present recommendations regarding NHA’s financial viability before the forum.
Dr. Abdul Hafeez Shaikh’s finance advisor chaired the meeting here on Wednesday.
Ministry of Commerce presented a proposal before ECC regarding removing 5% regulatory duty on import of cotton yarn till 30th June 2021. ECC discussed in details and granted approve to remove regulatory duty on importing cotton yarn in a bid to increase value-added exports.
The ECC also directed FBR to register new manufacturers or exporters in five export-oriented sectors (erstwhile five zero-rated sectors) while consulting the Ministry of Commerce till June 2021.
Ministry of the Industries and Production sought approval of releasing of funds through a supplementary grant to PSM.
It approved the allocation of up to 9.5 MMCFD gas from M/s PPL’s Benari X-I discovery to SSGCL. Similarly, ECC approved the allocation of 10 MMCFD gas from PPL’s Hadaf X-I to SSGCL.
Maritime Affairs minister took up the matter to prioritize berthing for wheat and sugar. ECC instructed the Logistics Committee to take initiatives for ensuing the berthing of wheat and sugar vessels on priority.The ECC gave directions not to affec the other imports.
ECC also approved additional funds to maintain Islamabad High Court Building and Judges Residences. Ministry of Housing had requested TSG in this regard.
READ NHA turns into a sick unit, loans exceed Rs 2.2 trillion.
However, the ECC deferred the Karachi Transformation Plan’s agenda item to the next ECC meeting for a detailed discussion.
