ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved on Wednesday a proposal of the Ministry of National Food Security and Research for extension in the period for export of surplus wheat from Punjab and Sindh provinces till September 30, 2015 as the millers and exporters struggled to meet three earlier deadlines because of lower international prices.

It was reported that less than half of the approved commodity could be exported so far.

In an earlier decision on January 20 this year, the ECC had allowed a total of 1.2 million tonnes of wheat export to facilitate reduction in surplus domestic stocks arising out of bumper crop due to higher support price and cheaper imports, causing glut in the market.

The January decisions had allowed Punjab government to export of 8,00,000 tonnes of wheat at transport rebate of $55 per tonne and 400,000 tonnes to Government of Sindh at the transport rebate of $45 per tonne. Later on February 9, the ECC also allowed export of wheat flour (atta) with specific timelines.

However, in view of further requests from Pakistan Flour Mills Association, the date for export of wheat and wheat flour has been extended till September 30, 2015.

A meeting of the ECC presided over by Finance Minister Ishaq Dar also approved the exemption of five per cent sales tax on wheat bran.

The FBR chairman had reported that flour, the main product of the flour industry was exempt from sales tax and imposing a tax on its by-product, bran was creating an anomaly which had to be removed. Accordingly, the ECC allowed the exemption of sales tax on bran.

The ECC also granted ex-post facto approval for the issuance of Sovereign Guarantee by the Ministry of Finance in respect of syndicated term finance facility amounting to Rs7.487 billion for the power sector.

The meeting also had a detailed discussion on the proposal submitted by Ministry of Food Security and Research regarding pending payments to PASSCO by the Afghanistan government for supply of wheat. The meeting approved the claim as prepared by PASSCO and also accorded approval for the payment to M/s Abdullah Khan and Imranullah Khan, hired by PASSCO for transportation of wheat.

It may be recalled that Pakistan and Afghanistan had signed an agreement in 2008 for supply of 50,000 tonnes of wheat to Afghanistan.

The ECC discussed Automotive Development Policy 2015-20 and Telecommunications Policy 2015 but deferred their approval. It directed the ministries concerned to make draft policies public and seek comments from all concerned and resubmit the policies for approval after incorporating public comments.

Published in Dawn, August 13th, 2015

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