ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved Rs157.734 million additional funds for the Heavy Electrical Complex (HEC) and Rs404.769 million in favour of the Cabinet Division for various requirements of the 6th Aviation Squadron.
The meeting of the ECC presided over by Finance Minister Ishaq Dar on Wednesday considered a summary of the Ministry of Energy (Petroleum Division) regarding the Framework Agreement between Pakistan LNG Limited (PLL) and State Oil Company of Azerbaijan Republic (SOCAR).
The ECC, after a detailed discussion, allowed the PLL to execute the proposed framework agreement with SOCAR Trading.
The meeting also directed the Ministry of Petroleum to determine our need of LNG at least three months in advance on a rolling basis.
The Ministry of Energy in a summary to the ECC stated Pakistan LNG Limited (PLL) has been facing difficulties in procurement of spot LNG cargoes since June 2022, owing to exorbitantly high international prices, as well as, Pakistan downfall credit rating.
The PLL has floated tenders for procurement of the LNG on spot basis for delivery in July to September 2022; however, no bid was received from LNG suppliers. The PLL also floated a midterm tender for the supply of 72 cargoes (one cargoes/ month during 2023-28) which also did not attract any bidder.
The meeting of the ECC has approved a summary moved by the Ministry of Industries and Production for approval of TGS of Rs157.734 million additional funds for the payment of employees’ salaries of HEC, mark-up to Bank of Khyber, and operating/ running expenses, subject to reconciliation of figures from Finance Division. It further directed the Privatization Commission to complete the privatisation process of HEC by 30th June 2023.
The ECC approved Rs404.769 million as TSG in favour of the Cabinet Division for various requirements of the 6th Aviation Squadron.
The meeting was informed that the Aviation Squadron of Cabinet Division operates with a fleet of AW-139 helicopters and it was assigned the mandate to carry out relief and rescue operations besides the VVIP and foreign dignitaries’ missions.
The repair and maintenance of helicopters is a regular feature to keep the fleet airworthy and spares for this purpose are imported from to the Original Equipment Manufacturer (OEM).
The expiry of warranty due to a specified time lapse has necessitated the replacement of a large number of parts and for this the Aviation Squadron requires approximately Rs550 million.
The meeting was further informed that during the fiscal year 2022-23, Rs111 million were allocated for the maintenance of helicopters’ fleet in the regular budget, the same after placing with NBP for payment through LC have been consumed.
Recently, the Cabinet Division has surrendered Rs404.769 million for emergency relief and repatriation for obtaining TSG to meet the enhanced maintenance requirements of the 6th Aviation Squadron of this Division.
Therefore, the approval of the ECC is sought for TSG amounting to Rs404.769 million for Emergency Relief and Repatriation (ERR) to meet the maintenance requirements of the Aviation Squadron.
When contacted, an official of the Finance Ministry said that the Finance Division’s summary seeking approval of TSG in respect of servicing of domestic and foreign debt, charged expenditure for the fiscal year 2022-23 was not put up before the ECC.
The meeting was attended by Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khuram Dastagir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Shahid Khaqan Abbasi MNA, Minister of State for Finance and Revenue Dr Aisha Ghaus Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, federal secretaries, and other senior officers.
Copyright Business Recorder, 2023
Comments
Comments are closed for this article.