Immediate release of sugar ordered: Ban on urea export to stay; steps to arrest price spiral
By Khaleeq Kiani
ISLAMABAD, Nov 5: The Economic Coordination Committee (ECC) of the cabinet on Friday decided to maintain the ban on the export of urea and directed the Trading Corporation of Pakistan to immediately release 50,000 tons of sugar to control increasing prices of the two products in the domestic market.
The ECC meeting, presided over by Prime Minister Shaukat Aziz, was informed that sugar prices were increasing in the country, particularly in Karachi. It was decided to release 50,000 tons of sugar immediately of which 20,000 tons will be supplied to Karachi alone. The TCP was also directed to enhance the supply of sugar to the Utility Stores Corporation so that the product was available at fair rates to consumers.
The ECC decided to maintain the ban on export of urea in view of the rising domestic demand. The government will sell imported urea in the local market at the rate of Rs450 per 40kg and absorb a loss of more than Rs700 per bag which it incurred on the product's import.
The meeting was informed that the provinces facing wheat deficit were not picking up in time the imported wheat lying at the Karachi Port. As a result, the prices of wheat flour were rising in the provinces. The meeting was told that the provinces were also not paying the bills of imported wheat.
The prime minister asked the Ministry of Food and Agriculture to take up these issues with the provincial governments at the earliest. The ECC directed the Pakistan Railways and National Logistic Cell to coordinate with each other in transporting wheat from the port to the provinces.
The ECC asked the Pakistan International Airlines (PIA) to look for supplier credit or export credit to purchase seven new Bombardier Dash Aircraft to replace its old Fokker planes.
It directed the PIA to make deals in a transparent manner. The prime minister said that no hidden fees to brokers or consultants would be allowed in case of major contracts of the government.
It asked the Oil and Gas Development Company Limited to purify and supply gas at the doorsteps of investors to set up power plants at the mutually agreed site. The ECC noted that through the additional supply of gas from the Uch field 600-mw electricity would be generated to meet its growing demand.
The ECC approved the summary of the Central Board of Revenue suggesting that the fixed scale of cumulative levy for old and used vehicles up to 1800 cc in customs general order (CGO) be notified through an SRO with retrospective effect.
The ECC was informed that exports during the first quarter of the current financial year were up by 17 per cent and exceeded the target. Most of the additional increase in export had come from non-traditional items and value-added goods.
The meeting was told that the revenue collection for the first four months (July-October) of the current financial year was provisionally estimated at Rs165.8 billion as compared to Rs136 billion of the corresponding period of last year, representing an increase of 22 per cent.
The ECC was informed that tax collection was likely to go up. It praised the CBR for collecting Rs15 billion more than the target. It also appreciated the efforts of the State Bank of Pakistan for taking timely measures to stabilize the exchange rate. It was resolved that the government shall maintain a stable and strong rupee consistent with the country's economic plans.
The ECC also approved the summary of the Ministry of Science and Technology regarding Chinese interest-free credit for the establishment of a 'Precision Mechanical and Instrument Technology Centre (PMITC)' in Lahore.
The prime minister asked the Ministry of Ports and Shipping to examine the possibility of starting shipping service between Pakistan and Bangladesh so that bilateral trade could be increased from current $250 million to $1 billion.
