Capital beautification for SCO cost exchequer Rs2.7b

ECC orders third-party evaluation of interior ministry’s claims

ISLAMABAD:

The government on Monday instructed a third-party validation of the Rs2.7 billion worth bills that the administration claimed to have spent on beautification of Islamabad during the Shanghai Cooperation Organization (SCO) event.
The Economic Coordination Committee (ECC) of the Cabinet sought the independent verification of these financial claims, which appeared on the higher side. 
However, during the meeting, chaired by Finance Minister Muhammad Aurangzeb, the ECC approved another Rs746 million claims on account of maintaining law and order and media facilitation related spending during the SCO summit.
The interior ministry presented the summary, seeking Rs2.7 billion spent on arrangements and beautification of Islamabad for the 23rd SCO summit, the finance ministry said.
After detailed discussions, the ECC decided that the Capital Development Authority (CDA) and the interior ministry should get a third-party cost and expenditure verification before bringing the summary back for further consideration, it added.
The two-day SCO summit was held in the middle of last month. So far, different government departments have claimed Rs5 billion expenses on the mega event, out of which Rs2.3 billion  had been sanctioned.
In September, the ECC had approved an additional Rs1 billion in funds for the Foreign Office for hosting the heads of government from the SCO countries in Islamabad, taking its total allocations to Rs1.5 billion.
The interior ministry had demanded Rs2.4 billion on account of spending on the renovation and beatification of the Jinnah Convention Centre –the venue of the SCO summit. The ECC found the figure on the higher end.
The interior ministry also sought reimbursement of Rs100 million cost on road work Rs100 million on environmental work and Rs100 million for event management.
The finance ministry stated that the information ministry also presented a summary, requesting a supplementary grant of Rs95.8 million to settle the outstanding dues related to the 23rd SCO Council of Heads of Government (CHG) meeting.
After deliberation, the ECC directed the ministry to re-appropriate the funds from its allocated budget for the fiscal year 2024-25. In case of a shortfall of funds at the end of the fiscal year, the Finance Division would allocate a technical supplementary grant as needed.
Out of nearly Rs96 million, Rs77.4 million was given for other services rendered and Rs9.4 million for rent of vehicles. The information ministry stated that the Rs95.8 million was the cost of facilitating 250 foreign and local journalists during the SCO summit.
The interior ministry requested Rs650.4 million to cover costs related to the SCO Summit, repairs of safe city cameras damaged during violent protests, and maintaining law and order in Islamabad. The ECC directed the ministry to re-appropriate the funds from its allocated budget for FY 2024-25.
Out of Rs650 million, the ECC gave Rs329 million on account of the cost due to violent protests by the Pakistan Tehreek-e-Insaf (PTI). It claimed Rs100 million on account of vehicles damaged during the protests, Rs50 million for food, Rs19 million in POL charges, Rs5 million for anti-riot gears and Rs150 million for safe city cameras repair.
The ECC also instructed the information ministry to arrange Rs536 million from its budget for spending on digital initiatives. The money will be reimbursed by the finance ministry later on.
The industries and production ministry brought forward a summary regarding the Peshawar High Court’s decision on the export of sugar from Khyber-Pakhtunkhwa. The ministry emphasised that based on the national data, the sugar production in Khyber-Pakhtunkhwa was less than the province’s annual consumption of 0.979 million MT.
The local deficit is usually met by sugar supplied from surplus-producing provinces such as Punjab and Sindh. Therefore, no sugar shortage was expected in Khyber-Pakhtunkhwa, even with the current and any future exports allowed by the ECC.
The ECC was requested to reallocate Khyber-Pakhtunkhwa sugar mills quota to other provinces. The ECC reiterated its earlier decision based on the national figures, said the finance ministry.
The law and justice ministry presented a summary for the surrender of Rs151.8 million from the housing and works ministry, to be transferred to the Supreme Court for the repair and maintenance of its buildings. The ECC approved the transfer through a technical supplementary grant for FY 2024-25.
A summary from the energy ministry (Petroleum Division) was also presented, seeking approval of the sale-purchase agreement (SPA) for the supply of POL products between the Pakistan State Oil (PSO) and the SOCAR Azerbaijan. The ECC approved the signing of the SPA.
The PSO is engaged with SOCAR for a SPA for the supplies of POL products under the inter-governmental agreement. The negotiations faced hurdles due to forex challenges of the country and eventual withdrawal of the open credit limit of $100 million by SOCAR. In August last year, SOCAR reverted with an offer of only $35 million credit for a single trial cargo, which was insufficient to even cover one full cargo.