ISLAMABAD: The federal government on Tuesday extended by two months the supply of cheap liquefied natural gas (LNG) to two fertilizer plants located in Punjab with an additional subsidy of around Rs 20 billion and subsidized essential commodities in Khyber Pakhtunkhwa. The supply has been extended by an additional Rs 17 billion till June 2023. Funds
These decisions were taken in a meeting of the Economic Coordination Committee (ECC) of the Cabinet under the chairmanship of Finance Minister Ishaq Dar, in which additional funds of Rs 9.8 billion were allocated to the Ministry of Defense and Rs 1.26 billion to pay gas charges for 14 months. Approved. Pakistan Steel Mills to Sui Southern Gas Company
The Ministry of Industries and Production has submitted a summary on the continuation of the Prime Minister’s Relief Package (PMRP) and Sasta Atta initiative for Khyber Pakhtunkhwa after 31 August 2022. The schemes were introduced in January 2020 and June 2022 but were partially unfunded.
After discussions, the ECC approved the continuation of PMRP and Khyber Pakhtunkhwa Sasta Atta initiative from September 1 to November 15 on the existing model of untargeted subsidy at current rates and allocation of additional funds of Rs 4.908 billion. Approved. By way of Supplementary/Technical Supplementary Grant for recovery of amount already spent by Utility Stores Corporation (USC).
Secondly, the ECC also allowed continuation of PMRP on hybrid model for 16 November to 30 June 2023 (excluding Ramadan) and allocated additional funds of Rs 10.755bn through an additional grant. Thirdly, the ECC also approved the continuation of the Khyber Pakhtunkhwa Sasa Atta initiative and the provision of subsidized Atta from 16 November to 30 June 2023, after rationalizing some stores, allocating funds of Rs 1.561 billion through supplementary grants. gone.
The ECC also approved a summary of the Ministry of Energy regarding the continuation of supply of subsidized RLNG to Fatima Fertilizer and Agritech Limited from October to December, including the government’s decision to ensure local production of urea. An additional subsidy of 20 billion rupees will be given for this.
The meeting was informed that the government has provided a total subsidy of Rs 71 billion to the two plants to ensure LNG at affordable prices (Rs 839 per mmbtu).
This includes subsidies of about Rs 33.7 billion which were already extended during the last financial year till September. Further in the current financial year, Rs 15 billion was earmarked for the said subsidy which was considered grossly inadequate as the pending claims for June to October had already reached Rs 24 billion.
The committee approved outstanding subsidy of Rs 9 billion and Rs 10.4 billion for the November-December period. The meeting was told that import tenders were received at Rs 5,980 per 50 kg bag for 300,000 tonnes as against local fertilizer at Rs 2,150 per sack. The combined production of the two plants was around 70,000 tonnes per month, thus justifying an additional subsidy of Rs 20 billion by the end of December.
Ministry of Industries and Production has submitted the summary of release of funds to SSGC for supply of gas to Pakistan Steel Mills (PSM). The meeting was informed that the production of PSM was stopped since 2015 and low flame gas of 2 million cubic feet per day (MMCFD) was being supplied to PSM mainly to maintain coke oven batteries and refractory furnaces. The ECC approved Rs 1.258 billion for gas bills for 16 months out of the pre-approved Rs 10 billion budget for PSM for FY23 and Rs 298.248 million for the period March to June 2022. Released.
