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[ad_1] ISLAMABAD:   Pakistan on Tuesday approved issuing $3 billion worth sovereign guarantees against a Chinese loan for a nuclear power plant and also stamped an operator-favoured State Support Agreement for the outsourcing of the Islamabad International Airport. The Economic Coordination Committee (ECC) of the outgoing cabinet took these decisions but left a decision for the import of at least one million metric tons of wheat for the caretaker government. Finance Minister Ishaq Dar, who may have some role in the interim setup, chaired the ECC meeting. After the meeting, the Ministry of Finance stated that the Pakistan Atomic Energy Commission submitted a summary regarding the issuance of government’s guarantees for Chashma Nuclear Power Project Unit -5 (C-5). “The ECC decided to allow the issuance of gradual sovereign Guarantee for the Chasma C-5 project within the IMF programme”. According to the terms of the agreement, China will provide the 21.3 billion RMB loan or $...

[ad_1] ISLAMABAD: Pakistan’s economic policymakers have suggested amendments to the gas supply priority order with the objective of according top priority to the industry, which will help boost industrialisation process in the country. In a recent meeting of the Economic Coordination Committee (ECC), its members argued that the merit order for gas supply had been distorted as the domestic sector (residential consumers) got first priority with no value addition. They underscored the need for amending the economic merit order by placing the industry at the top as it was making value addition and fetching revenue for the country. It was pointed out that the government had already decided the gas load management plan wherein provision of gas to domestic consumers would be ensured for eight hours a day during winter months. However, some policymakers emphasised that it would not be prudent to further reduce gas supply to residential consumers by relegating them in the priority or...

[ad_1] ISLAMABAD: The federal cabinet on Monday approved up to 193% increase in gas prices to recover an additional Rs350 billion from consumers in this fiscal year while making some further adjustments in the recommended rates for industrial and CNG consumers. Headed by Prime Minister Anwaarul Haq Kakar, the cabinet approved up to 172% increase for domestic consumers, 137% increase for commercial consumers and 193% increase in prices for cement manufacturers with effect from Nov 1. The cabinet referred back the proposed increases for processing units of non-export and export industries, captive power plants of non-export and export industries and the compressed natural gas (CNG) consumers to the Economic Coordination Committee (ECC) of the Cabinet for further deliberations. The cabinet decided that if the ECC develops consensus on the rates for these categories, it should be deemed as approved by the federal cabinet, Mohammad Ali, the federal minister for energy, said. Ali...