ISLAMABAD, Feb 03 (APP):The Economic Coordination Committee of the Cabinet (ECC) Wednesday approved the proposal of Petroleum Division for renewal of gas supply agreement (GAS) between Sui Southern Gas Company Limited (SSGCL) and Fauji Fertilizer Bin Qasim Limited (FFBQL).
After a detailed discussion, the ECC meeting chaired by Minister for Finance and Revenue Dr Abdul Hafeez Shaikh, approved with a condition that the renewal would be allowed on “as and when available basis” for a period of five years.
The SSGCL may restore the gas supplies to Fauji Fertilizer till December, 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalization of tariffs (whichever is earlier).
Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Interior Sheikh Rasheed Ahmad, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Institutional Reforms and Austerity Dr Ishrat Hussain, Special Assistant to the PM (SAPM) on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Federal Minister for Energy Omar Ayub Khan participated in the meeting.
On the recommendation of the Ministry of Housing and Works, the ECC allowed the ministry to utilize its own funds of Rs 377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi.
The committee also approved another summary by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in Ghotki district, Sindh, to M/S Sui Southern Gas Company Limited from its previous allocation to the SNGPL (as approved earlier by the ECC on October 6, 2009). The price of gas would be as per the applicable Petroleum policy.
The Petroleum Division also moved a summary for removal of dividend distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company was being considered for privatization.
After due deliberation, the ECC allowed that the dividend distribution cap might be removed to ensure that the divestment transaction generates optimum sale proceeds for the government.
The committee decided that the MPCL would ensure dividend distribution in accordance with the provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.
The ECC also approved technical supplementary grants (TSGs) including Rs. 141.308 million to the Ministry of Information and Broadcasting for an expenditure incurred on media campaigns to create awareness among public during COVID-19 pandemic, Rs. 9.025 million to the Ministry of Information and Broadcasting for a media campaign on the occasion of Kashmir Solidarity Day – February 5, 2021, Rs 5 million for purchase of spare parts for helicopter maintenance by HQs Pakistan Rangers (Punjab), Rs 25 million for purchase of spare parts for helicopter maintenance by HQs Frontier Corps Balochistan (South), and Rs 10 million for repair and maintenance of helicopter by HQs Frontier Corps KP (South), D I Khan.