ECC allows to import 200,000 MT Granular Urea from China on G2G basis, K-2 and K-3 summary also approved

Islamabad: Economic Coordination Committee (ECC) has allowed the Trading Corporation of Pakistan Limited (TCP) to import 200,000 Million Tons (MT) Granular Urea from China on Government-to-Government (G2G) basis on deferred payment basis within 90 days.

The Ministry of Industries and Production earlier submitted another summary on Chinese offer for import of Urea by TCP on G2G basis in the ECC meeting here chaired by Federal Minister for Finance and Revenue Miftah Ismail.

“The ECC after deliberation allowed TCP to import 200,000 MT Granular Urea from China on G2G basis on deferred payment basis within 90 days,” said an official announcement issued after the meeting.

The ECC meeting also approved a summary submitted by Pakistan Atomic Energy Commission (PAEC) for grant of extension in the construction period of K-2 from 30th November, 2020 to 21st May 2021 and K-3 from 30th September 2021 to 18th April, 2022 to ensure disbursement of pending loan of US $ 383 million (approximately) before expiry of loan availability on 03-06-2022 from Exim Bank, China to the contractor, who has now completed the project.

In March, the PAEC had announced that it had successfully connected its Karachi Nuclear Power Plant Unit-3 (K-3) to the national grid.

The 1,100-megawatts generation capacity nuclear power plant (NPP) had achieved criticality on February 21 and was undergoing certain safety tests and procedures before it could finally be connected to the grid.

K-3 is the second NPP in Pakistan with the generation capacity of 1,100 MW and its addition to the national grid is expected to help reduce electricity tariff in the country.

K-3 is one of the two similar NPPs located near Karachi. The other one, named K-2, was inaugurated by then Prime Minister Imran Khan on May 21 last year. The groundbreaking of both the units (K-2 & K-3) of the project was performed by then Prime Minister Nawaz Sharif in November 2013.

The construction of K-2 and K-3 was started in August 2015 and May 2016, respectively, after approval of the Pakistan Nuclear Regulatory Authority (PNRA). The fuel loading of the plant (K-3) started in December 2021 after getting clearance from the PNRA.

The PAEC is now running six NPPs in the country. Two of them are located in Karachi, while four in district Mianwali — Chashma Nuclear Power Plant Unit 1-4. The plants have been developed with the Chinese support.

Federal Minister for Finance and Revenue Miftah Ismail approved the import of urea and the K-2 & K-3 matters at the ECC meeting.

Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Religious Affairs and Interfaith Harmony Abdul Shakoor, Minister of State for Finance & Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Division Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

Ministry of National Food Security and Research (MNFS&R) earlier submitted a summary on modalities framed for import of 3.00 Million Metric Ton (MMT) of wheat in the light of the decisions of the ECC of the Cabinet on 09-05-2022 and Federal Cabinet on 10-05-2022.

The ECC after discussion allowed import of 2 MMT on G2G basis while 1 MMT through international tendering process under the existing arrangement. PASSCO will be the recipient agency for the imported wheat. The ECC further directed the MNFS&R to get the requirements of Wheat by the provincial governments.

Ministry of Economic Affairs submitted a summary on exemption from all kinds of taxes and duties on the complete portfolio being executed by the Saudi Fund for Development (SFD). In Pakistan, SFD is providing assistance for various projects including Energy, Health, Education, and Infrastructure projects.

The ECC, considering the comments of the Federal Board of Revenue (FBR) on the subject, suggested that tax exemption clause for SFD may be inserted in the Money Bill considering strong and strategic relationship between Pakistan and the Kingdom of Saudi Arabia, encompassing economic cooperation and investment.

The ECC allowed removing 2% Additional Custom Duties on import of Palm Oil for shipments originating from all sources except Indonesia for 10-20 June, 2022, subject to approval of Federal Cabinet. The ECC also approved several Technical Supplementary Grants.