June 25, 2002	Tuesday	Rabi-us-Sani 13, 1423

ISLAMABAD, June 24: The Economic Coordination Committee of the Cabinet (ECC) here on Monday approved the import of High Speed Diesel (HSD) by oil marketing companies on cost competition basis.

The meeting, which was presided over by Minister for Finance Shaukat Aziz, was of the view that the new decision will allow more competition amongst the oil companies and as such lead to benefits to the consumer.

Prices will be announced fortnightly, and oil marketing companies will maintain their respective price uniform at 29 depots location, although the inter company price may differ from each other at the same location.

The ECC, according to an official announcement, also reviewed the stock position of various essential items and noted ample availability of oil, wheat, sugar and fertilizer. It also reviewed prices of essential items and noted that consumer price index (CPI) increased by 2.58 per cent over last year and in May it fell by 0.62 per cent.

The meeting further reviewed prices of ghee and noted that price of ghee increased by Rs2-3 per kg due to GST. Further, prices of ghee are subject to fluctuation due to price of palm oil and Soya been oil in the international market.

The total import of edible oil is around $400 million and ECC stated that there was a need to encourage local production and reduce dependence on imports.

The latest budget measures will encourage local oil production as duty on imported oil seeds has been increased from 5 to 10 per cent so as to encourage local farmers to increase production of oil seeds locally. In addition, there are some fiscal incentives to ensure production of local oil seeds and extraction of oil from such oilseeds.

The government has also directed the Ministry of Industries, Provincial Governments and District Governments to monitor prices of ghee to keep a check on the commodity. It was further noted that during the week average prices of tomato decreased by 9.03 per cent, onion 5.02 per cent, kerosene 3.07 per cent, petrol 1.23 per cent and bananas 1 per cent. As compared to the corresponding period of last year (21.6.2001 to 20.6.2002), prices of tomato fell by 26.4 per cent, gur 20.9 per cent, sugar 17.9 per cent, mash pulse 11.7 per cent and moong pulse 11.3 per cent. Prices of basmati rice, masoor pulse, moong pulse washed, mash pulse washed and sugar were the lowest in the region.

Shafi Niaz, Advisor to the President on Agriculture informed the committee that the Cotton Crop Assessment Committee has estimated that cotton crop will be around 10.9 million bales.