ISLAMABAD, May 27: The Economic Coordination Committee (ECC) of the Cabinet is expected to approve a reduction in fertilizer prices with immediate effect to provide relief to the farmers during the ongoing Kharif season.

The ECC, to be presided over by Finance Minister Shaukat Aziz, would meet here on Wednesday to review pre-budget scenario on availability and prices of essential commodities and petroleum products.

Official sources told Dawn that Ministry of Food, Agriculture and Livestock (Minfal) has submitted a summary to the ECC for a sizable reduction in fertilizer prices immediately that would benefit the farmers during the ongoing Kharif season.

The ministry has reminded the government that a ministerial committee led by Minister for Industries Liaquat Ali Jatoi had submitted its recommendations seeking Rs20 per bag price reduction shared on 50:50 per cent basis by the government and the fertilizer industry.

Almost a month has passed since the committee submitted its report but finance ministry did not take a decision on that.

Because of higher fertilizer and pesticides costs, the wheat yield has not been up to the target, the ministry contended.

The ECC would also extend a letter of support (LOS) to a European company which plans to construct a 70-MW hydro power project on river Jehlum downstream Mangla dam.

The ECC is also expected to settle a $1 billion dispute between Uch Power Project and Oil and Gas Development Company Limited (OGDCL).