ECC approves import of used tractors under Kissan Package

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet Tuesday approved the import policy order 2022 for 5-year-old tractors under the Kissan Package.

Regarding ‘Duty Reduction’ for import of second-hand tractors, the ECC allowed depreciation in value at 2% per month up to a maximum of 60% as already provided under the Customs General Order (CGO) no. 14 of 2005.

The committee also approved an equity investment of $4.9 million by the Fauji Foundation for acquisition of shares of Daharki Power Holding Limited and getting waiver from the policy enumerated in foreign exchange manual as a Trust under Charitable Endowment Act 1980.

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet. The Ministry of Commerce tabled a summary on import of agricultural tractors under the Kissan Package 2022 and proposed amendments to the Import Policy Order 2022 to reduce the cost of tractors. The ECC after deliberation approved proposals of the commerce ministry and allowed an amendment to the relevant clause of the IPO 2022 for import of up to 5-year-old tractors.

The Finance Division presented a summary on proposals of State Bank of Pakistan (SBP) regarding equity investment of USD4.9 million by the Fauji Foundation for acquisition of shares of Daharki Power Holding Limited and submitted that the government had allowed the Foundation to make equity investment abroad of US$12 million in Daharki Power Holdings Limited in 2008.

Fauji Foundation, Asian Development Bank and Daharki Power Holdings Limited, BVI entered into an agreement in 2008, which provided the ADB the right to exercise option in respect of 2,750,000 shares subscribed by it. The ECC considered the proposals of SBP and allowed equity investment of USD4.9 million by the Fauji Foundation for acquisition of 2,750,000 shares (18.64% stake) of Daharki Power Holdings Limited and granted waiver/exemption to Fauji Foundation from the policy enumerated in Foreign Exchange Manual being incorporated as a trust under Charitable Endowment Act 1980.

The Ministry of Energy (Petroleum Division) presented a summary for assignment of working interest in exploration licenses/Blocks. The ECC after discussion approved assignment of 34% working interest of M/s Pakistan Oilfields Limited (POL) and 6% of M/s Attock Oil Company Limited (AOC) to M/s Polskie Gornictwo Naftowe I Gazowinictwo S.A (Polish Oil and Gas Company) (POGC) in Kirthar South Block (Sindh).