ISLAMABAD, Nov 10: Prime Minister Shaukat Aziz on Wednesday approved import of 500,000 tons of wheat to build a strategic reserve and to stabilize the price of wheat in local market.

The decision was taken at a high-level meeting presided over by the prime minister. The meeting reviewed the wheat and cotton situation and availability of fertilizer to farmers.

It was informed that this year's cotton crop is estimated to yield 12.1 million bales, two million bales more than last year.

Mr Aziz said that the two million extra bales would give the rural economy a big boost as more than Rs24 billion extra liquidity would be available. This would boost economic activity and farmers' increased income would be an incentive for them to increase output.

Mr Aziz said the bumper crop of cotton will have positive impact on our GDP growth. The government's decision to export cotton through TCP kept the prices of cotton stable, he said directing the food and agriculture minister to ensure that the prices of cotton remain stable during the season.

The meeting also reviewed the situation of fertilizer in the country. The chief minister of Sindh was directed to take action to ensure stability in prices of DAP fertilizer.

The meeting was attended by adviser finance, minister of food and Agriculture and other senior officials.

The PM also reviewed the progress on implementation of development projects under PSDP programme during the first quarter of the financial year and utilization of rupee allocations for the development projects.

Mr Aziz said the development process should not be delayed and the Planning Commission should ensure and provide necessary support for timely completion of projects within the sanctioned cost.

He directed the Planning Commission to strengthen the monitoring process. He said the Commission should hold regular review meetings with the concerned executing agencies/organizations. If necessary, the funds of slow moving projects could be transferred to fast moving projects to ensure timely completion.

The meeting also reviewed the progress on Mirani Dam, Gomal Zam Dam, Mangla Dam raising scheme and other development projects in water and power, transport and roads sectors. Overall progress in major projects was found to be generally satisfactory.

Mr Aziz however, directed that the pace of development should be accelerated.

The progress on development schemes identified by Parliamentarians was also reviewed. The meeting was informed that necessary funds for approved schemes have been released.