Posted - August 16, 2013 - Imran Ali Kund - The Nation
The Economic Coordination Committee (ECC) of the Cabinet was informed on
Thursday that Public Procurement Regulatory Authority (PPRA) has
refused to give any exemption in the pubic procurement rules to the
government in awarding the contract for construction and retrofitting of
LNG terminals.
A meeting of the Economic Coordination Committee of
the Cabinet was held under the chairmanship of Finance Minister Senator
Ishaq Dar at the Prime Minister’s office. The Ministry of Petroleum and
Natural Resources submitted a report to the ECC that tendering process
for Fast Track Engro Project, and SSGC LPG Retrofit Project would be
carried out as per PPRA rules 2004 to ensure transparency without
seeking any exemptions for PPRA rules.
The ECC meeting had on July 18
earlier constituted a sub-committee comprising secretary finance and
secretary petroleum and natural resources to assess as to whether
government can get the PPRA rules exemption for construction of LNG
terminals, but PPRA administration told the sub-committee that it is not
possible to give any exemption.
The ministry also sought approval
from ECC for issuance of tenders by Inter-State Gas Company (ISGC) for
the construction of LNG terminals.
The meeting also directed the
Ministry of Civil Aviation to put up a comprehensive summary with a plan
to reduce the current losses of Rs.3.3 billion per annum being incurred
by PIA.
The meeting was informed that oil reserves in the country
sit comfortably at 36 days as compared to 23 days of reserves in the
corresponding period last year. The improvement has been brought about
as a result of government’s decision of clearing circular debt which has
provided liquidity to Pakistan State Oil to open letters of credit for
import of crude oil. There was however concern shown over the rising
trend of prices of crude oil in the international market.
The ECC
also deliberated in detail about the recent pressure on prices of
essential commodities. Senator Ishaq Dar said that the provincial
governments may be asked to keep a check on essential food items so that
hoarders and speculators are not allowed to make undue profits.
The
meeting was informed that Karachi Stock Exchange index reached 23,437
points, showing 17.7% increase since May 11, 2013. It was also informed
that the Business Confidence Index which was -34% last year has now
turned positive to 2.0 points which is a clear testimony of the
confidence of markets on the economic policies being pursued by the
present government. The international banks which were earlier hesitant
to extend any loans to Pakistan are now prepared to do business with us,
said Senator Ishaq Dar.
The ECC rejected a proposal made by Gilgit
Baltistan that foreign funded projects namely 26MW Shagharthang Skardu
and 4MW Thack Chilas may be exempted from the conditionality of
relending and repayment and that instead Government of Pakistan may pick
up the loans of these projects.
The meeting was attended by Minister
for Industries and Production, Ghulam Murtaza Jatoi, Minister for
National Food Security and Research, Sikandar Hayat Bosan, Minister for
Information, Broadcasting and National Heritage, Senator Pervaz Rashid,
Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi,
Minister for Science and Technology, Zahid Hamid, Minister of State for
Information Technology, Ms Anoosha Rehman Khan and heads of various
divisions and departments.
Post to be found at:
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/16-Aug-2013/no-exemption-from-ppra-rules-for-lng-project
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