Islamabad, November 6,
The Economic Coordination Committee of the Cabinet under the chairmanship
of Finance Minister, Mr. Shaukat Aziz
reviewed this morning sensitive price indicator
(SPI). The meeting noted that by and large the prices of consumer
items remained stable. However, as a precaution, the meeting
decided to direct the Provincial Governments to
ensure price stability during the month of
Ramadan. It was also decided to ensure consumer quality items in the
The ECC noted with satisfaction the increase in foreign exchange reserves,
balance of payment position and volume of the exports.
The oil, wheat, fertilizer and sugar stock positions were reviewed. The
meeting expressed its satisfaction over their sufficient
The ECC further decided to encourage the international donor agencies to
buy local goods, including edible oil, wheat, rice and sugar for
distribution among the Afghan refugees.
The ECC converted Chinese loan of Chinese Yen 114.942 million awarded to
Heavy Mechanical Complex into Government's equity in Heavy
Mechanical Complex Books.
The ECC also decided to reschedule outstanding amount of loan of the
Askari Cement for three years from October 2007
to October 2010.
The ECC in principle agreed to the establishment of Dry Port in Mirpur,
Azad Kashmir. However, the modalities for revenue collection under Custom
Act 1969 will be thrashed out threadbare for smooth functioning of the Dry
To clear the backlog of auctionable cargo at the seaport, the ECC decided
to appoint a five-member committee comprising collector appraisement
nominees of Karachi Port Trust, Port Qasim, Intelligence Cell of Ministry
Communications and Special Monitoring Team to conduct examination of
auction able cargo to undertake assessment, fix
reserve prices and accept or reject the bids.
The Finance Minister urged the Committee to expedite clearance of
auctionable cargoes at the Karachi Port.
The ECC decided that the Government of Pakistan will provide unconditional
and irrevocable financial guarantee for a loan of Rs.6 billion obtained by
KESC from the various commercial banks.
The ECC decided to approve Model Petroleum Concession Agreement to cut
delays in seeking approval for each concession agreement from the
concerned Ministries. The Model Petroleum
Concession Agreement reflects a number of fiscal
and operational incentives to the investors to attract investment in
the petroleum exploration and production sector as enshrined in the
new Onshore Petroleum exploration and Petroleum
Policy 2001 approved by the Cabinet in May 2001.
On the energy sector intercorporate circular debt, the ECC approved
measures to clear the backlog by netting out payments by various
government entities. This will solve old issues
and improve the balance sheet of state owned
The meeting was attended among others by the Minister for Commerce,
Minister for Privatization, Minister for Communications, Minister for
and Power, Deputy Chairman of Planning Commission and Secretary General,
Ministry of Finance.