ISLAMABAD: The Economic Coordination Committee of the cabinet has imposed regulatory duty on mobile phones and steel products and approved a policy for short-term independent power producers.

A meeting of the ECC on Saturday, presided over by Finance Minister Ishaq Dar, imposed a regulatory duty of Rs200 per set on import of mobile phones.The government claims that the levy aims at discouraging underinvoicing. The country imported mobile phones worth $610.262 million in 2013-14.

The ECC also imposed 15pc regulatory duty on steel products billets, bars and wire rods, and 5pc on cold-rolled coils and galvanised platted sheets to protect local manufacturers.

Anofficialstatementissued after the meeting said the levy of regulatory duty aims at giving a boost to the local industry and curb dumping. Local manufacturers have been demanding tariff protection and imposition of regulatory duty.

On a proposal of the ministry of water and power to utilise the exist-ing generation capacity, the ECC approved a policy for short-term independent power producers.

The meeting allowed short-term power producers exemption of 5pc customs duty for three years.

The Federal Board of Revenue and National Transmission and Dispatch Company had opposed the project, but the ECC rejected their objections.

The water and power ministry made it clear that the policy did not contravene the Supreme Court judgment of March 30, 2012 in a case related to rental power plants.

The ministry also said the new arrangement is based on the `take and pay` arrangement and it will create no obligation on the government of Pakistan for payment of capacity (or any other) charges.

The ECC also approved in principle of the North-South gas pipeline project, which is capable of transporting 1-2 BCFD of gas from Karachi to the mid-country.

The pipeline will help transport imported LNG and give transport capabilities for the Iran-Pakistan and Turkmenistan-AfghanistanPakistan-Iran gas line projects which are expected to come on line in three to give years.

The ECC designated Inter State Gas System (Pvt) Ltd as executing agency to implement the project under government-to-government arrangement in liaison with the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).

On another proposal of the ministry of water and power, the committee approved the issuance of sovereign guarantee by the ministry of finance in respect of syndicated term finance facility of Rs25 billion for the power sector.

The loan has been arranged on behalf of power distribution companies by the Power Holding (Pvt) Ltd through a syndicated term finance facility from a consortium of local commercial banks. The tenure of the facility is five years with a grace period of two years. The repayment of the loan shall be the responsibility of the respective distribution company.

Keeping in view the natural gas demand / supply deficit on the supply network, the ECC approved a proposal of the ministry of petroleum and natural resources to allocate gas to the SSGCL from Ayesha gas field, which is the nearest transmission network.