ISLAMABAD, July 21: Federal Commerce Minister Liaquat Ali Jatoi on Monday said the ministry was currently finalizing a couple of options to allow export of sugar.

At a press conference he admitted that an earlier decision of the Economic Coordination Committee (ECC) of the cabinet for export of sugar through Trading Corporation of Pakistan (TCP) cost Rs700 million to the national exchequer.

He said his ministry has proposed a 30-40 paisa per kg regulatory cess on sugar to create a permanent fund for resolving the sugar crisis, which had now aggravated, and other related problems that arise from time to time.

He said the summary for reduction in fertiliser prices by Rs15-20 per bag is pending with the prime minister for approval.

The minister said he had held a couple of meetings with fertiliser industry as head of the ministerial committee. The committee, he said, comprised ministers for finance, agriculture, commerce and deputy chairman planning commission and chairman national reconstruction bureau.

He did not agree with a reporter who suggested that the proposal for reduction in fertilizer price was shot down by the finance minister and said the summary was now awaiting prime minister’s approval.

He said the prime minister in a recent cabinet meeting had said that it would be of no avail if the reduction in fertiliser price was annouced after the current season.

He confirmed that wheat production this year was lower than the target mainly because of sugar crisis which delayed wheat sowing early but did not agree when told that sugar mills were not ready to start the crushing season before January next year because of prevailing surplus problem.

The minister said that Pakistan would be holding single country exhibitions in Bahrain and Kuwait later this year to take part in Iraq rebuilding.

He said he would visit China in October to hold negotiations for the import of spare parts for the export of machinery and equipment to Iraq.

Responding to another question, Jatoi said he had reached an understanding with big car manufacturers to provide cars to the customers through secret balloting and start booking new orders with Rs100,000 down payment and the balance to be paid at the time of delivery.

He said Pakistan would welcome Chinese car companies to manufacture cars in Pakistan instead of seeking a market here.

He said that Pakistan could not allow import of second hand cars in the prevailing circumstances because it would benefit vendor and spare parts industry in foreign countries and close down local car making facilities.

After getting the local industry closed down in this way, the foreign companies would start raising their prices and that would put the country in a difficult position.

He did not agree with a suggestion that he was providing undue protection to the car manufacturers although his portfolio required that he did so and added that during his tenure as industries minister automobile production had risen by 50 per cent.

He said that a German industrial group would be visiting Pakistan in August to complete formalities to set up a steel pipe mill in Karachi with an initial investment of $50 million.