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ECC withdraws customs duty on cotton yarn import

ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet withdrew customs duty on import of cotton yarn till June 30, to ensure smooth supply of the commodity to the industry, while bridging the gap between domestic production and overall demand for the inputs.

The summary for withdrawal of Customs Duty on import of Cotton Yarns under PCT 5205, 5206 and 5207 was presented by Secretary, Ministry of Commerce before the cabinet committee during a meeting chaired by the Federal Minister for Finance and Revenue Hammad Azhar.

The Power Division presented a summary regarding waiver of minimum 66 percent Take-or-Pay commitment in Power Purchase Agreement(s) (PPA) & Gas Supply Agreement(s) (GSA) of three RLNG based power plants namely Quaid-e-Azam Thermal Power Plant, Balloki and Haveli Bahadur Shah Power Plant.

These amendments envisage submission of a Monthly Production Plan (MPP) as a binding on the power purchaser and the seller wherein the ourchaser shall be entitled to submit demand requirement as needed, at least seventy five days before the start of each such month, which would be finalised by the System Operator and Operating Committee under the PPA.

The concept of a Monthly Delivery Plan (MDP) for deliveries of gas under the GSA, had been paired with the Monthly Schedule as provided under PPA and the MPP would come into effect from the year 2022.

After seeking input from relevant stakeholders, the committee approved the summary and appreciated the concept of Monthly Production Plan (MPP) as a cost-effective solution, enabling the Power and Gas purchasers to make requisite purchases in line with actual requirements instead of following a fixed arrangement.

The power division also presented another summary proposing amendment to the Facilitation Agreement and Amendment to the GoP Guarantee Agreement with KAPCO.

It included the proposal that the project may be withdrawn from the Privatization Commission and entrusted to Private Power and Infrastructure Board (PPIB). After due deliberation, the committee approved the summary, in principle, subject to formal vetting by the Law Division.

The ECC also approved a Technical Supplementary Grant for Finance division amounting to Rs 11.7 billion as the share of the federal government for the establishment of four mother and child care hospitals in Punjab.

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