ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, under the chairmanship of Finance Minister Ishaq Dar, has decided to impose 20 per cent regulatory duty on the import of wheat due to rising trend of wheat imports despite a very good crop in the country.
Meanwhile, the ECC also approved government guarantee for loans to PIA amounting to Rs12 billion so that the national flag carrier could meet its targets, while terms and conditions of the loans will be determined in consultation with the Ministry of Finance.
The ECC discussed the draft Textile Policy in detail and sought improvements in various proposals given in the draft. A committee headed by Minister for Planning and Development Ahsan Iqbal and Minister for Food Security Sikndar Hayat Bosan, Minister for Textile Senator Abbas Khan and senior representative of Ministry of Finance as members would review the draft policy till November 15 after which it would be placed before the ECC for reconsideration.
On this occasion, the finance minister said the government wanted to facilitate the textile sector in every possible way and the policy should be framed in a manner that it covers all necessary aspects related to the textile sector.
The ECC accorded approval in principle for the restructuring of Pakistan Central Cotton Committee (PCCC) with the assurance from the Textile Ministry that establishment of the Headquarters of the Committee at Multan would not require any funding from the GOP. The chair also asked the Ministry of Textile to share its business plan which was the key feature of the Restructuring Plan and also get clearance for Service Rules and Regulation from Regulation Wing of the Finance Ministry. The ECC considered the draft Policy Framework for Private Sector Transmission Line Projects submitted by Ministry of Water and Power with FBR and Nepra putting forth their views regarding certain provisions of the policy.
The ECC also approved corporate tax exemption for ten years with instructions that the companies concerned would file tax returns. There was also exemption allowed on turn tax over for a period of ten years. Withholding tax on income was also exempted. The ECC however decided that withholding on GST on imports will be leviable and adjustable. It was decided that Nepra will finalize tariff petition within a month for transmission lines without re-opening of tariff obtained through international competitive bidding.
The ECC approved a proposal of M/o Water and Power to extend grace period by another two years for syndicated terms fiancé facility of Rs136.45 billion for Power Holding (PVT) Ltd.