ECC Approves Rs. 8.28 Billion Subsidy for Utility Stores During Ramazan

The Economic Coordination Committee of the Federal Cabinet (ECC) today deliberated and approved a summary tabled by the Ministry of Industries and Production for Ramzan Relief Package 2022. The ECC after discussion approved Ramzan Relief Package 2022 for 19 essential items to be sold at subsidized rates at USCs with a total subsidy of Rs. 8,280 million. This comes a few days after the USC sent a summary to the ECC, seeking Rs. 8 billion for a relief package during the holy month of Ramazan. It intends to provide subsidies on 19 goods, including flour, pulses, ghee, sugar, rice, gram flour, milk, and spices under the package. Also, the subsidies will vary between Rs. 10 and Rs. 80 per kg. Likewise, the Ministry of Energy (Petroleum Division) submitted a summary to allow amending the Petroleum Concession Agreement, allowing GHPL Assignment of Working interest in Wali, Jandaran West, Saruna, and Pesu block of OGDCL. The ECC approved to amend the respective Petroleum Concession Agreements by allowing GHPL to increase its Working Interest above its statutory Working Interest of 2.5 percent being state participator in Wali, Jandran West, Saruna, and Pesu blocks of OGDCL. Ministry of Energy (Power Division) submitted a summary of the incentive package announced by the Prime Minister regarding the reduction in the price of electricity. The ECC considered and approved PM’s relief package of Rs. 5 per unit by way of reduction in electricity charges base rate for the relief period of four months (March 2022 to June 2022). The relief package will be applicable to all commercial and domestic non- ToU consumers having monthly consumption up to 700 units, excluding lifeline consumers. It should be noted that the cash flow requirement for the PM Relief Package is Rs. 136 billion.