The Economic Coordination Committee (ECC) of the federal cabinet has approved three summaries of Petroleum Division, including removal of dividend distribution cap on Mari Gas Company Limited (MPCL) under the gas pricing agreement.
Federal Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh chaired the ECC meeting on Wednesday.
Petroleum Division also moved a summary for removal of dividend distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company is being considered for privatisation. After due deliberation, the ECC allowed that the dividend distribution cap may be removed to ensure that the divestment transaction generates optimum sale proceeds for the government.
The committee further decided that MPCL would ensure dividend distribution in accordance with the provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.
The Petroleum Division placed another summary before ECC regarding renewal of Gas supply Agreement (GAS) between Sui Southern Gas Company Limited and Fauji Fertilizer Bin Qasim Limited. After detailed discussion, the ECC approved with a condition that renewal would be allowed on “as and when available basis” for a period of 05 years. SSGCL may restore the gas supplies to M/S Fauji Fertilizer till December, 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalization of tariffs (whichever is earlier).
The ECC considered and approved one more summary presented by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in District Ghotki, Sindh Province to M/S Sui Southern Gas Company Limited from its previous allocation to SNGPL (as approved earlier by the ECC dated 06-10-2009). The price of gas will be as per the applicable Petroleum policy.
