ECC approves export incentive package, other projects

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APP96-11 ISLAMABAD: January 11 - Finance Minister Senator Mohammad Ishaq Dar chairing Economic Coordination Committee of the Cabinet. APP

ISLAMABAD, Jan 11 (APP): Economic Coordination Committee (ECC) of the Cabinet Wednesday approved three projects including the Prime Minister’s Package of Incentives for Exporters.
The summary of the Prime Minister’s Package was moved by Finance Division and formulated with a view to mitigate exporters’ difficulties and enhance the country’s exports.
The committee meeting was chaired by Finance Minister Senator Mohammad Ishaq Dar.
The incentives package will have an estimated financial impact of Rs 180 billion, and is applicable for the period from January 16, 2017, till June 30, 2018.
The incentives for next FY 2017 18 would only be available to those exporters who would achieve an increase of 10% in their exports as compared to their exports for FY 2016 17.
The ECC approved the proposal of Ministry of Water and Power to extend the closing date of collection of Neelum Jhelum Surcharge at Rs 0.10/kWh up to June 30, 2018, for the Neelum Jhelum Hydropower Project. The previous closing date for the surcharge was December 31, 2016.
The extension in the closing date for a period of 18 months up till June 30, 2018, is expected to result in collection of Rs 9 billion which will assist in ensuring successful completion of the project.
In pursuance of the decision of the Council of Common Interests (CCI), the ECC approved the proposal of Ministry of Water and Power for issuance of Letter of Comfort / GoP guarantee by Finance Division to WAPDA for settlement of Net Hydel Profit claims of Government of Punjab.
On the occasion, the Finance Division informed the ECC about the latest key economic indicators, including reviews of product’s prices, inflation, commodity stock position, energy figures, foreign exchange reserves, foreign investment, trade performance and tax revenues.
The ECC was informed that headline inflation measured by the CPI increased by 3.7% in December 2016 as compared to 3.8% in November 2016.
On average, during July December FY 2016 17, the CPI is recorded at 3.88%. te ECC was apprised that the reported stock of wheat as on January 3, 2017, is 7.5 million tons showing that sufficient quantity of local wheat is available for daily releases to mills by Provincial Food Departments and PASSCO.
The Finance Division informed the ECC that the stock of various POL products averaged 34 days on January 10, 2017.
It was also informed that production in the Large Scale Manufacturing sector stood at 2% in July October FY 2016 17.
The ECC was apprised that worker remittances received during July December FY 2016 17 amounted to US$ 9,459 million. It was also informed that gross foreign exchange reserves stood at US$ 23.183 billion as on January 9, 2017.