ISLAMABAD, May 3: Federal Minister for Industries, Production and Special Initiatives Jehangir Khan Tareen on Wednesday admitted that the government had no administrative mechanism for controlling prices of commodities following the introduction of local government system.

Talking to reporters after the inauguration of a two-day roundtable on “Safta: Agenda for Trade liberalisation in Saarc”, the minister said that the new system had resulted into abolishing of executive posts at district and tehsil level, which were effectively used for controlling prices.

The roundtable was organised by Saarc Chamber of Commerce and Industry in collaboration with Commonwealth Business Council (CBC).

There were price control committees at district as well as tehsil level, which ceased to exist following the introduction of local governments.

The minister proposed that there was a need for making changes in the system in this regard. However, Mr Tareen said that the government was trying to control the prices through greater supply of commodities.

Answering a question, the minister claimed that premium on cars would come to zero in the near future. He added that there was no plan to revise upward duties and taxes on import of cars in the next fiscal year.

The minister declined to comment on the surge in the prices of pulses in the local market. He added that this was an issue related to agriculture ministry.

Talking to Dawn the minister said that a committee had been constituted for reviewing the new auto policy to be implemented from the next fiscal year. He was of the opinion that it would help in bringing in new investment in the country.

He said that the Engineering Development Board (EDB) was re-organised to deal effectively with all industrial issues. Previously, the board only deals with the deletion programme of the auto sector.

Mr Tareen claimed that the price of cement was brought down following the suspension of export particularly to Afghanistan and allowing of freight subsidy.

The minister said that as soon the cement price came down to Rs300 per bag due to imports in the local market, the export of cement to Kabul would be resumed subsequently.

Regarding sugar, the minister said that the TCP had awarded a tender for 50,000 tons of sugar last week. The private sector was also importing sugar. He said this would help in bringing down the price of the commodity.

When asked that the ministry had failed to come up with an industrial policy, the minister said that the policy was being formulated and he would not give any deadline for the announcement of an effective industrial policy.

The minister added that there was a lack of coordination among various ministries over the policy formulation.