March 29, 2002	Friday	Muharram 14, 1423

ISLAMABAD, March 28: The economic coordination committee (ECC) on Thursday allowed compensatory duty drawback (CDDB) on locally produced polyester products.

The CDDB will be equal to the difference between the duty drawback (DDB) rates applicable at any time and the DDB, which would be admissible if the polyester staple fibre was imported on payment of customs duty.

The duty drawback will be effective retrospectively from March 1, said an official announcement.

The ECC meeting, which was presided over by finance minister, Shaukat Aziz also approved arrangements made by agriculture ministry for the settlement of outstanding dues of Karachi Port Trust and Port Qasim Authority.

The meeting noted improvement in industrial growth, over all economic growth and foreign exchange reserves. The ECC was also informed about the inflation for the eight months which stood at 2.8 per cent and foreign reserves have reached $5.4 billion during the same period.

It was noted that industrial growth in the first eight months of current fiscal was 5.2 per cent; overall economic growth was on track to achieve 3.3 per cent, and if the current increase in the manufacturing and agriculture continued, it could exceed the revised target.

The positive trend of growth in agriculture and large scale manufacturing was attributed to performance of sugar, automobile and light engineering sectors.

The ECC noted the increase in demand for automobiles and limited supply.

To meet the demand, the ministry of industries was directed to ensure proper marketing by automobile suppliers, review of premium and deposit policies and encourage auto suppliers to increase production.

The ECC also approved NLC to coordinate logistics for bonded cargo for reconstruction of Afghanistan through multi-modal transportation system.

This would enable the provision of efficient service for supplies of goods from anywhere in the world to Afghanistan.

The meeting was informed that remittances from overseas Pakistanis received in February stood at $236 million as against $78 million in the corresponding month of last year.

During the July-February period of the current financial year the accumulative remittances stood at $1.4 billion this year against $788 million during the same period last year, registering an increase of over 78 per cent.

The meeting was informed that the foreign direct investment (FDI) in July-Feb period of current fiscal was $254.5 million this year against $199 million in the corresponding period of the last year.

The gross foreign exchange reserves as on February 26 stood at $ 5.4 billion.

The meeting was also informed that the price of essential items more or less remained stable. However, prices of basmati rice, moong pulse washed and sugar were lower in the region.