ECC approves DTP on imported urea at Rs2,150/bag

Mehtab Haider
Saturday, Oct 01, 2022

ISLAMABAD: The Economic Coordination Committee on Friday approved the dealer transfer price of 50kg imported urea bag at Rs2,150 and incidental charges of Rs620.47 per bag, with sharing subsidy at 50:50 basis with provinces.

The ECC meeting was presided by Finance Minister Senator Mohammad Ishaq Dar on Friday. Ministry of Industries had obtained approval of the ECC to import 200 kilo metric tonne (KMT) from China’s M/s Sinochem Fertilizer and M/s CNAMPGC. The Trading Corporation of Pakistan (TCP) estimated that it required Rs27.33 billion for urea import.

National Fertilizer Marketing Limited (NFML) informed the ECC that the cost to be incurred with reference to incidental charges such as transportation, storage/warehousing etc would be approximately Rs2,483.88 million.

Thus, dealer transfer price (DTP) of 50kg imported urea bag was fixed at Rs2,150/bag by NFML. Difference in urea import price and suggested DTP for NFML dealers has been estimated at Rs21.215 billion as subsidy, which would be borne by the government. The subsidy amount would be obtained by the Ministry of Commerce through technical supplementary grant.

M/s Zaver Petroleum Corporation (Pvt) Limited (ZPCL) request for assignment of its entire 10 percent working interest (WI) in Bannu West Block to M/s Orient Petroleum Inc (OPI) was also approved by the committee.

The ECC also granted five years extension with effect from April 2, 2022 in the validity period of development and production lease of Zamzama D&PL, on the existing terms and conditions, covering an area of 525.79 square kilometres in district Dadu. The ECC further granted extension in the validity period of 18 exploration licenses.

Approval was also given by the committee for tariff rationalisation to K-Electric at Rs0.5087/unit so a uniform tariff could be maintained across the country. The ECC also said that the National Electric Power Regulatory Authority could be approached regarding the revised schedule of tariff determined for the January-March 2022 quarter, or the same could be incorporated in the April-June 2022 schedule of tariff being determined by NEPRA. Once approved, the tariff should be notified in the official gazette via modification of SRO 575(1)/2019. These adjustments, the meeting decided would be recovered in three months with effect from October 1, 2022.

Further, the committee approved the summary for Ministry of Commerce and allowed release of consignments of previously banned items for which goods declaration (GDs) have been filed on or after August 22, 2022.