ECC clears Singapore firm’s incorporation by PSO, SOCAR

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet Friday approved the incorporation of an International Joint Trading Company in Singapore by Pakistan State Oil (PSO) and the State Oil Company of Azerbaijan Republic (SOCAR).

The committee instructed the Ministry of Petroleum to ensure due diligence regarding specific investment approvals, particularly equity injections, as well as timeline for operationalisation of the company.

A meeting of the Economic Coordination Committee (ECC) of the Cabinet was held under the chairmanship of the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

PSO board approves SPA execution with Azerbaijan’s SOCAR

The meeting was attended by Minister for Commerce Jam Kamal Khan, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance and Revenue Ali Parvez Malik, Federal Secretaries, and senior officers from relevant ministries and divisions.

The ECC approved a proposal from the Ministry of Commerce regarding the inclusion of PCT/HS codes for newly notified mandatory items of the Pakistan Standards and Quality Control Authority (PSQCA) in the Import Policy Order (IPO), 2022. The decision incorporates specific PVC and polymer-based products into the mandatory regulatory framework, ensuring compliance with Pakistan Standards.

The ECC also approved Pakistan’s membership in the New Development Bank (NDB), established by BRICS member countries. The committee endorsed the purchase of 5,882 capital shares in the NDB, amounting to USD 582 million, with USD 116 million as paid-in capital.

The ECC also deliberated on the transfer of shares of DISCOs in the name of the President of Pakistan as proposed by the Ministry of Energy (Power Division). The Committee approved the transfer with the observation that the approval is subject to confirmation that the transfer will have no financial implications.

To ensure financial support for key initiatives, the ECC approved the following Technical Supplementary Grants (TSGs):

Rs. 19.15 billion under the Finance Division for 133 PSDP schemes of the defunct Pakistan Public Works Department (Pak-PWD). The funds will now be transferred to respective ministries, divisions, and provincial governments.
Rs. 5.36 billion for the Ministry of Housing and Works to execute development schemes under the SDGs Achievement Programme (SAP), with Rs. 4.25 billion allocated for Sindh and Rs. 1.11 billion for Khyber Pakhtunkhwa.
Rs. 1.914 billion (USD 6.836 million) in favor of NADRA for the FATA TDP-ERP (KP-CCDSP) Project, ensuring the transition of 43 Citizen Facilitation Centers (CFCs) in Khyber Pakhtunkhwa. The allocation has been surrendered by the Economic Affairs Division and recorded under the Interior Division with no additional financial burden on the government.
Rs. 500 million for the Ministry of National Health Services, Regulations & Coordination (NHSR&C) for the procurement of life-saving medicines and vaccines. The ECC directed the Ministry of Health to devise a structural solution for future payment of the subject pension.
Rs. 84 million for the President’s Secretariat (Public) to replace outdated official transport, allowing for the procurement of two Hino Coaster mini-buses and three Toyota Hiace vans as part of a phased replacement plan.
TSG for the Digital Economy Enhancement Project (DEEP) – Component II under the Board of Investment (BoI) to facilitate the establishment of the Pakistan Business Portal (PBP), aimed at streamlining regulations, eliminating redundant laws, and providing a comprehensive digital platform for businesses.