ISLAMABAD, March 3: The Economic Coordination Committee (ECC) of the cabinet on Friday announced that an investigation would be launched into profiteering by sugar mills irrespective of the status of their owners.
Prime Minister Shaukat Aziz presided over the committee’s meeting.
Economic Adviser to the Finance Ministry Dr Ashfaq Hassan Khan told journalists after the meeting that the ECC took note of ‘excessive profiteering’ by sugar mills and this was still going on.
The meeting decided that the government would not let anyone fleece the masses anymore.
He said a committee would work permanently to monitor prices of essential commodities on a weekly basis.
He said the action against sugar mill owners involved in profiteering would not spare anyone, not even those enjoying influence in the corridors of power.
Dr Khan said the prime minister had ordered preparation of medium- and long-term strategies in consultation with provincial governments to ensure availability of sugar at suitable prices. The strategy would be implemented in the sugar season, he said.
The ECC asked the ministry of food, agriculture and livestock to take steps to ensure increase in sugarcane yield, he said.
He said sugar prices had declined from Rs42-43 per kilogramme to Rs37-38 per kg because of steps taken by the government.
He said the number of utility stores outlets had been increased from 450 to 1,100 across the country to sell sugar at Rs27.5 per kg. Also, supply to utility stores has been increased to 32,000 tons from 11,000 tons per month.
He said the sugar price had also dropped in the international market from $450-460 per ton to $434 and this would have a good impact on domestic prices.
He said Central Board of Revenue officials had been posted at all sugar mills to monitor production, sale and stocks.
Dr Khan said that on Feb 27 sugar mills had 1.36 million tons of sugar in stocks against 800,000 tons last year.
The ECC, he said, had decided that the Trading Corporation should continue to import sugar to build strategic reserves.
SMUGGLED VEHICLES: He said the ECC had allowed government departments to purchase smuggled vehicles lying with taxation departments to meet their requirements, instead of buying new vehicles.
WHEAT SITUATION: Dr Khan said the wheat production target of 22 million tons was likely to be exceeded. About 2.8 million tons in stocks were available on Feb 26, against one million tons last year.
Reports about an impending wheat crisis were baseless, he said.
GAS ALLOCATION: The meeting constituted a committee comprising ministers for industries, petroleum, agriculture and investment and the prime minister’s adviser on finance to prepare a formula for allocation of 100 million cubic feet of natural gas to the fertilizer industry from the Qadirpur field, instead of allocation on the first come first serve basis as recommended by the petroleum ministry.
It decided that parties seeking gas for fertilizer projects would be pre-qualified keeping in view their financial health, expertise for timely completion and management of projects.
The 100 MMcfd additional gas supply for 12 months would increase urea production by one million tons, Dr Khan said.
DRY PORTS: The ECC decided to shift the Peshawar dry port to Azakhel.
Dr Khan said the committee had approved in principle the setting up of a dry port in Mirpur.
However, the Azad Jammu and Kashmir government had been asked to amend its constitution to enable the CBR to collect taxes on goods at the dry port, he said.
IMPORT OF PARTS: He said the ECC decided to look into a proposal about import of parts and accessories of textile machinery at concessionary rates during preparation of the budget.
