KARACHI, July 28: The Sindh cabinet on Wednesday decided to release wheat stocks to flour mills to check profiteering , and seek the Centre's permission for direct import of wheat in case this appeared inevitable to overcome a shortage.

It was the first fully-fledged formal meeting of the cabinet since Dr Arbab Ghulam Rahim, who chaired it, assumed the office of the chief minister. The meeting, which lasted more than three hours, also decided to denationalize the St Joseph's and St Patrick's colleges on the condition that the management would retain 75 per cent of the colleges' staff for three years.

The remaining staff would be absorbed by the government. Mr Salahuddin Haider, Adviser to the CM on Information, and Ms Mehtab Akbar Rashdi, Information Secretary, briefed newsmen about the cabinet's decisions.

They pointed out that the decision was in accordance with the one taken by the then provincial government in 2001 and under which educational institutions were to be returned to their previous owners.

He said that while selecting teaching staff for retention, preference would be given to those whose remaining service period would be up to three-five years. He said that the terms and conditions for denationalization would remain the same as agreed upon between the two sides in 2001.

There were only three items on the agenda, they said, adding that the third one pertained to the liabilities of local government institutions' employees. The institutions were directed to clear the liabilities out of the Rs136 million fund being released to them as 2.5 per cent share in General Sales Tax because the provincial government was running short of funds.

However, regarding development expenditures on the projects inherited upon the devolution, it was decided that funds would be released only after due inquiries, said Mr Haider.

In a briefing on wheat stocks position and estimated requirement in Sindh, the cabinet was told that the food department had already procured 0.18 million tonnes while the process was still under way.

On the food ministry's directive, Passco has allocated 0.1 million tonnes of wheat in May which was being lifted by Sindh whereas another quantity of 0.08 million tonnes was in the pipeline.

It may be recalled that the estimated wheat requirement in Sindh stands at 4.2 million tonnes whereas the production this year is expected to remain at about 2.2 million tonnes. The deficit would be overcome through import from Punjab or overseas.

The cabinet was also informed that the Punjab government had agreed to provide 0.1 million tonnes of wheat to Sindh soon. The Passco was further directed to deliver an additional 0.1 million tonnes of wheat after lifting of the already allocated stocks.

Sindh would also receive an additional 0.25 million tonnes of imported wheat. However, if there was a problem in the availability of imported wheat by the cut off date, the Sindh government would seek Centre's permission for direct import, said Ms Rashdi.

The cabinet decided that the food department would release wheat from its stocks after making sure that a stand-by stock, sufficient to meet Sindh's requirement for two months, was in reserve.

Ms Rashdi said that Sindh's requirement of wheat for its strategic reserves was estimated to be around 1.2 million tonnes, including 0.6 million tonnes meant for Karachi.

In reply to a question, Mr Haider said that the cabinet had authorized all ministers to inspect flour mills' wheat stocks to ensure a strict check on hoarding. Wheat release to flour mills would be made after assessing their requirement on a priority basis with a view to ensure stability/reduction in wheat and flour prices.

Mr Haider told newsmen that the licences issued to certain flour mills on unlimited releases now stood cancelled. A limit would be determined later, he added.

He said that the cabinet had also decided to offer rewards to those providing information about hoarding of wheat by any mills. Action against such mills, he added, would be taken by the concerned DCOs in coordination with the food department under the Anti-hoarding Act.