THIS refers to the letter ‘Who is the ECC working for?’(Jan 28). The writer has pointed out two controversial decisions by the Economic Coordination Committee (ECC) in the matter of sugar and wheat which have enriched a few mill owners at the expense of the common man.

A similar thing has happened in the imposition of the regulatory duty announced on Jan 14 by the ECC. Most of the items covered by the 15pc regulatory duty are indeed finished goods and the placement of this duty has ostensibly given cover to local businesses.

One very clever addition in the 15pc range is not on a finished good but a semi-finished basic raw material for industry — mild steel billets. This semi-finished product must be rolled in a re-rolling mill and cannot be traded in the open market. All its importers are local industries.

While all other semi-finished products only had regulatory duty of five per cent put on them; rather cunningly — this item has been overburdened with 15pc.

This gives a windfall profit to those mills making billets in the country — and sends to the wall the smaller re-rolling mills, which do not produce their own semi-finished product.

The ECC did not consult these stakeholders but just sneaked in this item along with other more justified items in the list.

This is crony capitalism — a few SROs or strategic laws that help only a few and generally create a climate for business that is based on who you know and what you can get manipulated.

It is no wonder Pakistan has been rated as one of the countries that is least ‘free’ in which to do business.

F. Mowjee

Karachi

Published in Dawn March 3rd , 2015

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