The federal government has approved in principal a move to revise the price of imported Urea and allowed to fix a dealer transfer price (DTP) of a 50 kilogram imported bag of Urea at Rs2,340 per bag.
This was decided during a meeting of the Economic Coordination Committee (ECC) of the Cabinet on Wednesday, which was chaired by the Federal Finance Minister Ishaq Dar.
The forum further directed that 50% of subsidy on the imported Urea should be shared by the provinces.
The incidental charges at Karachi Port Trust (KPT) were fixed at Rs594 per bag and at Rs1,008 per bag at Gwadar to ensure stability in prices.
The Petroleum Division tabled a summary on change in take-or-pay commitment in power purchase agreements & gas supply agreements of three regasified liquefied natural gas (RLNG) public sector power plants including Quaid-e-Azam Thermal Power Plant, Balloki Power Plant and Haveli Bahadur Shah Power Plant.
In the wake of prevailing international economic conditions and the unprecedented price hike of RLNG in the international market and to optimize the utilization of RLNG for the continued operations of these power plants.
The ECC considered and approved the proposal of the power division to fix the minimum take or pay commitment at 33% under the PPA and GSA to guard the interests of both buyers and suppliers. Further, the ECC allowed the fixation of GSD under the GSA at Rs15 billion per power project.
The ECC considered another summary of Ministry of Industries and Production on provision of funds to Heavy Electrical Complex (HEC) to release mark-up amount to Bank of Khyber (BoK).
The ECC after discussion approved Technical Supplementary Grant (TSG) amounting to Rs80.988 million to HEC for payment to Bank of Khyber for mark-up amount for 2nd, 3rd and 4th quarters of the calendar year 2022.
The ECC also gave approval in principle for provision of funds with direction that the transaction of HEC must be completed by February 15, 2023.
Ministry of Railways submitted a summary on its business plan to generate decent source of earning in order to improve its financial health through lying of fiber optic cable along its infrastructure.
After deliberations, the ECC constituted an inter-ministerial committee comprising federal secretaries of all relevant divisions, headed by the federal law minister, to draft a Right of Way Policy on the issue.
The ECC also approved a Technical Supplementary Grant of Rs500 million in favor of Ministry of Housing and Works for execution of development scheme on construction, rehabilitation of flood affected roads, District Muzafargarh-I.