Islamabad: February 14 : 2024 : The Economic Coordination Committee (ECC) of the federal cabinet has approved massive increase in gas prices from February 1,2024 .
The formula which was approved by ECC in its meeting held here on Wednesday was following . For CNG sector has price has been increased by Rs 170 per BTU . For Non protected category of consumers , gas price has been increased by Rs 100 per BTU, For protected consumers category , gas has become costlier by Rs 300 per BTU and Bulk buyers will pay Rs 900 per BTU extra from February 1,2024 . However , no increase in fixed gas charges has been made .
Massive increase in gas prices is yet another killing act of the caretakers who have no moral or otherwise authority to go for such an anti people measure . The decision of making gas costlier for fertilizer sector is going to bite the farm sector in a big way . It will result in jacking up of urea and other fertilizer prices .
The Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet on Wednesday.
The meeting was attended by the Minister for Privatization and Inter Provincial Coordination Fawad Hasan Fawad, Minister for Interior, Commerce & Industries Mr. Gohar Ejaz, Minister for Energy and Petroleum Division Mr. Mohammad Ali, Minister for Planning, Development and Special Initiatives Mr. Sami Saeed, Minister of Maritime Affairs, Communication and Railways Mr. Shahid Ashraf Tarar, Deputy Chairman Planning Commission Dr. Muhammad Jehanzaeb Khan, Advisor to PM on Finance Dr. Waqar Masood, Federal Secretaries, and other senior government officers of the relevant ministries.
The ECC considered the proposal of Federal Board of Revenue (FBR) regarding “Rationalization of Criterion of Enhanced Rate of 25% Sales Tax on Locally Manufactured/ Assembled Vehicles (PCT87.03)”. The proposal was approved after detailed discussion.
Finance Division sought “Approval of Share Subscription Agreement (SSA) of National Credit Guarantee Company Limited (NCGCL)” from the forum. The ECC approved the proposal of signing of SSA between NCGCL, Karandaz and the Government of Pakistan through Ministry of Finance.
Ministry of Commerce presented a summary regarding amendments in “SRO 760(I)/2013-Import and Export of Precious Metal Jewellery and Gemstones Order, 2013” and “Import Policy Order 2022- Serial No. 16 of Part II, Appendix-B”. The Economic Coordination Committee agreed to the proposals in principle, and directed that a committee comprising of representatives of Ministry of Commerce, Ministry of Law, FBR and SECP may formulate detailed proposals for this export oriented policy reform targeting opening up of the service sector.
The summary of Petroleum Division regarding “Natural Gas Sale Pricing FY 2023-24 (Effective – 1st February, 2024)” was deliberated upon at length. After discussion ECC decided that revision of sale price/ tariff should be consistent with revenue requirements of the Sui companies. The committee recommended uniform gas price for fertilizer plants. ECC directed Competition Commission of Pakistan to investigate the undue increase in urea price during recent past and fix the responsibility.
ECC also directed Ministry of Industries for ensuring the stability of Urea prices in the market.
The ECC also gave approval of the summary of Intelligence Bureau for “Provision of Additional Funds of Rs.125 Million during the Current Financial Year” to meet the increasing requirements of Bureau vis-a-vis operations against terrorists and anti-state elements.
The summary of Finance Division regarding “Approval of Technical Supplementary Grant for Provision of Rupee Cover for Remaining Funds amounting to Rs. 7,621,756,096/- of 1st Tranche of Credit Lines of US $85 Million obtained from the World Bank” was approved by ECC