Govt may extend subsidy on five items at Utility Stores

ECC meeting today also expected to set support price of cotton


Our Correspondent June 26, 2021
PHOTO: FILE

ISLAMABAD:

The federal government has decided to extend the subsidy on five essential commodities at Utility Stores for another six months.

It has also decided to set the subsidy price of cotton and increase the price of tobacco to control inflation.

The decisions are expected to be given the nod in a meeting of the Economic Coordination Committee (ECC) of the cabinet on Sunday (today).

The meeting, presided over by Finance Minister Shaukat Tarin, will review a 14-point agenda, including the approval of summaries of 10 supplementary grants for the Federal Board of Revenue (FBR), the establishment division and the ministries of aviation, finance, inter-provincial coordination and interior.

Read more: Rs330b subsidy proposed for power

According to the documents available with The Express Tribune, subsidy on five essential items at Utility Stores is likely to be extended from July 1 to December 31 this year.

In addition, the national food security and research ministry has submitted a summary for setting the support price of cotton at Rs4,224 per 40 kg.

However, the commerce ministry is opposing the proposal.

Sources said the decision would be made after a detailed review of the summary at the ECC meeting.

The ECC will also consider a summary of providing technical supplementary grant to the establishment division for Pakistan Academy for Rural Development Peshawar.

The meeting is also likely to approve a summary by the finance division to provide funds for the disbursement of Dispute Reduction Allowance to government employees for the current financial year 2020-21.

Also read: Subsidy allocation increased to Rs682 billion

It will also review the approval of a technical supplementary grant to the inter-provincial coordination ministry for the current financial year.

The ECC is also expected to approve the interior ministry’s supplementary grant of Rs1.12 billion for Frontier Corps Balochistan (South).

Another supplementary grant by the interior ministry for Rs21 million to meet the expenditures of the Immigration and Passport Department will also be considered.

The ECC will also review the planning and development ministry’s supplementary grant seeking the use of foreign aid for National Disaster Risk Management Fund projects in the current financial year.

The meeting will also consider the summary of providing a technical supplementary grant of Rs456.41 million to the FBR.

A summary submitted by the national food security ministry for setting the minimum price for tobacco crop would also be reviewed.

After examining the summary, the minimum price of tobacco would be fixed and the cess rate on the product would be reviewed.

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