ISLAMABAD: The Cabinet’s Economic Coordination Committee (ECC) has approved a subsidised electricity tariff of Rs 19.99 per kWh for export-oriented industries from October 1 to June 20, 2023.
Ishaq Dar, the Federal Minister for Finance and Revenue, was in charge of the ECC meeting on Monday.
On the basis of a summary from the Ministry of Commerce, the committee agreed to continue the regionally competitive electricity tariff for export-oriented sectors in FY22/23. This is to keep export-oriented sectors internationally competitive and keep exports going even though the economy is slowing down.
It was decided that electricity could be given out at Rs 19.99/kWh from October 1, 2022, to June 30, 2023. This price would apply to all five export-oriented industries: textiles, jute, leather, surgical goods, and sports goods.
The finance minister told reporters that giving electricity away for free would cost the government Rs100 billion because of the difference in prices.
In a good move, Dar also broke the link between the dollar and the power rates for industries, saying, “We should start thinking in rupees.”
The Power Division says that the government will give exporters a subsidy of Rs10 to Rs15 per unit.
The Ministry of National Food Security and Research gave a summary of proposals to use Gwadar Port and changes to the process for pre-shipment inspection agencies for wheat imports.
The ECC was told that the higher prices in the few bids that were received for the tender on September 26, 2022, were due to risks caused by changes in the inspection regime and port.
The ECC agreed that both proposed changes to the Trading Corporation of Pakistan (TCP) tender inspection could be dropped for now because they would raise the price of importing wheat.
But the TCP and the Ministry of Commerce should make sure that the top four inspection firms check out the goods at the loading port before they are sent out.
The TCP was also told to put out new bids to make sure that the allotted amount of wheat would be imported.
The ECC also gave the Ministry of Interior a $410.11 million grant for law and order costs.
The ECC put off the Ministry of National Food Security and Research’s summary on the profitable support price for the wheat crop of 2022/23.
Federal Minister for National Food Security and Research Chaudhary Tariq Bashir Cheema, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, federal secretaries, and senior officers all attended the meeting.