Import of 0.3 million tons of urea approved by ECC

The Economic Co-ordination Committee (ECC) of the Cabinet meeting presided over by Finance Minister Dr Abdul Hafeez Sheikh has approved the import of 300,000 tons of urea for Kharif season. Sources said the ECC meeting held on Thursday was informed that 0.597 million tons of urea shortage has been anticipated for Kharif crop because of gas supply suspension to three Sui Northern network plants.
The meeting was informed that 0.6 million tons of urea import would be required for Kharif crops. An official said that $100 million SABIC facility and $21 million non-project grant aid extended by Japan available for importing urea.
The ECC directed the concerned ministries and divisions to ensure a balanced use of port facility at Gwadar, so that this port could also generate revenue for Balochistan.
The ECC after detailed deliberations approved the signing of Gas Sales Purchase Agreement (GSPA) for the Turkmenistan, Afghanistan, Pakistan, India (TAPI) gas pipeline project. An official said that complete cost of the project originally estimated at $3.3 billion in 2004 escalated to $7.6 billion in 2008.
The Ministry of Petroleum also informed the meeting that around four to five years would be required to complete the project after GSPA signing.
The ECC was informed that a steering committee headed by Minister for Water and Power, Syed Naveed Qamar is already working for determination of price of gas pipeline.
The ECC asked the minister to make full presentation to the steering committee as well as member ministers of the ECC. The steering committee should meet regularly, the chairman informed the members of the committee.
Regarding the summary on pursuing international exploration appointments by Pakistan Petroleum Limited (PPL), the ECC directed the concerned ministry to follow the existing procedure prescribed under F.E. Circular No.12 of the State Bank of Pakistan.
On another summary moved by the same ministry on "Financing of Gas Infrastructure Development Schemes," the ECC reiterated the decision of the energy conference held on April 9, 2012 for putting complete ban on new connections.
The ECC also approved in principle the proposal regarding amending the policy guidelines on LPG air mix, CNG or LNG based pipeline distribution projects undertaken by Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited."
The ECC constituted a sub-committee comprising Dr Asim Hussain, Minister for Petroleum & Natural Resources, Deputy Chairman Planning Commission, Secretary Finance, Secretary Economic Affairs Division and Secretary Petroleum to further deliberate on the economic costing as well as the impact on final consumer price before implementing the policy and the committee will present the recommendation to the ECC.
The meeting was attended by Minister for Petroleum and Natural Resource Dr Asim Hussain, Minister for Water and Power Naveed Qamar, Minister for Port and Shipping Babar Ghori, Minister for Railways Ghulam Ahmad Bilour, Minister for Textiles Makhdoom Shahabuddin, Deputy Chairman Planning Commission and secretaries from all the concerned ministries and divisions.