ECC approves continuation of subsidy on five essential items through USC.

ISLAMABAD -- The Economic Coordination Committee (ECC) of the Cabinet Thursday approved a proposal presented by Ministry of Industries and Production for continuation of general subsidy on five essential items through Utility Stores Corporation (USC) from January 1 to June 30, 2021.

The subside would continue out of the funds allocated under Prime Minister's Relief Package-2020 in the backdrop of COVID-19 pandemic, according to a press statement issued by the Finance Ministry here.

The meeting of the ECC was chaired by Federal Minister for Finance and Revenue Dr Abdul Hafeez Shaikh while among others, it was attended by Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Railways Azam Khan Swati, Federal Minister for Industries and Production Hammad Azhar , Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Maritime Affairs Ali Haider Zaidi, Adviser to the PM on Institutional Reforms and Austerity Dr Ishrat Hussain, Federal Minister for National Food Security and Research Syed Fakhar Imam, SAPM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar and Governor State Bank Dr Reza Baqir participated in the meeting.

The Ministry of Industries and Production also proposed approval of re-allocation of Rs2.332 billion for ERP procurement and IT infrastructure for automation of stock management throughout the network of USCs.

The cabinet committee approved in principle, with a direction to hold further consultation with the Ministry of Information Technology and Ministry of Finance for smooth implementation, the statement added.

Furthermore, it was decided that the USC would present a revised proposal after working out a specific percentage range(s) of differential from market prices for subsidizing essential commodities through Ministry of Industries and Production before next ECC meeting.

The percentage range(s) would serve as a benchmark for subsidizing the essential commodities through USCs, keeping in view, fluctuations in international commodity prices.

On Textiles and Apparel Policy 2020-25 by the Ministry of Commerce, the ECC decided to include SAPM on Power Tabish Gauhar in the sub-committee for detailed consultation on proposals related to the power sector which fall under the ambit of the Textile Policy. The Textiles and Apparel Policy 2020-25 would be presented before ECC in a couple of weeks.

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