March 19, 2003	Wednesday	Muharram 15, 1424

ISLAMABAD, March 18: The Economic Coordination Committee of the Cabinet (ECC) was informed on Tuesday that the country is likely to have 21 million tons of wheat this year, thanks to recent rains.

The ECC has approved 5.3 million tons procurement target.

The ECC, which was presided over by Prime Minister’s Advisor on Finance Shaukat Aziz, was informed that due to recent winter rain, the production of wheat was expected to be in the vicinity of 21 million tons.

“Therefore, to stabilize wheat prices and to pass on benefit to the growers, 3.5 million tons will be procured by Punjab, 0.5 million tons by Sindh, 0.1 million tons by Balochistan and 1.2 million tons by PASSCO,” the minister for agriculture said.

These stocks, according to an official announcement, will cater to the requirements of releases to the flour mills, deficit of provinces and agencies, besides maintaining adequate strategic reserves. Pakistan will continue to export wheat in view of the bumper crop expected this year.

In view of the situation obtaining in the Middle East, the ECC reviewed Pakistan’s stocks of essential items, including oil, sugar, wheat and fertilizers. The meeting expressed satisfaction that Pakistan was in a comfortable position to face any possible fall out as average stocks of oil were all time high over twenty eight days, foreign exchange position was comfortable, essential commodities were available in abundance and their prices were stable and exports continue to register an upward trend.

The meeting noted that remittances by overseas Pakistanis in eight months from July-February, 2002-2003 were $2.87 billion as compared to $1.4 billion in the corresponding period of last year, registering an increase of over 105pc.

Similarly, remittances in February were $343 million as compared to $236.33 million in the corresponding period of the last year, registering an increase of over 45 per cent. The gross foreign investment in the eight months was around $640 million as compared to $254.5 million in the corresponding period of last year. Out of this, contribution of foreign direct investment during eight months of the current financial year was $631 million. Likewise, the FDI in February was recorded at $38 million. FDI continues to show a healthy trend this year.

The ECC noted that prices of essential items more or less remained stable. As compared to New Delhi the prices of wheat flour, rice basmati, masoor pulse, moong washed, mash pulse, grain pulse washed, sugar, potatoes, onions, red chilies, powered, garlic, diesel, petrol and CNG were lower in Islamabad while LPG and electricity were more expensive.

To stabilize prices of sugar in the domestic market and to encourage sugarcane growers, ECC allowed Trading Corporation of Pakistan to export 100,000 tons of sugar through open tenders. The meeting also approved the credit lines of Rs2.1 billion for purchase of sugar.

ECC also approved equity-based investment abroad by TRG Pakistan Limited amounting to $12 million. This would be in areas of software development and call centre and will feed this business in Pakistan.

The meeting also approved status quo to ensure that no breeding animal is exported and only those animals that are to be slaughtered for meat and beef are exported. The ministry of Food, Agriculture and Livestock would continue to enforce present system of NOC.

The ECC also lifted ban on financing of new flour mills by commercial banks. However, the commercial banks would finance such projects on merits and their financial viability in consultation with the State Bank.

The meeting was attended by the Ministers of Commerce, Food and Agriculture, Petroleum and Natural Resources, Information Technology, Education, Dy Chairman Planning Commission, Governor State Bank, Chairman Export Promotion Bureau, Chairman BOI and secretaries of respective divisions.