ISLAMABAD, Aug 17: The Economic Coordination Committee (ECC) of the cabinet has increased the rates of the Produce Index Unit (PIU), a mechanism of agricultural land valuation, by three times to Rs1,200 from Rs400.

The ECC meeting held here on Friday and presided over by Prime Minister Shaukat Aziz also decided to provide three per cent subsidy on interest rates of outstanding loans obtained by spinning mills between July 1, 2003 and June 30, 2007. This would have a financial impact of Rs1 billion that would be picked up by the government for payment out of taxpayers’ money.

Dr Ashfaq Hassan Khan, spokesmen for the ministry of finance told a news conference after the meeting that the existing PIU rate of Rs400 was fixed in 1989 and hence it was increased to Rs1,200 to enhance their credit limit. He said the increased valuation rates that were used as collateral for loans would increase their ability to get big loans.

He said the ECC had deferred a revised pricing policy for LPG because its language was apparently seen in favour of a particular interest group.

The spokesman said the ECC had decided to provide additional equity of Rs500 million to the Textile City in Karachi to increase its share to Rs1.1 billion. Another Rs1.1 billion was being arranged by the private sector and the banking sector. He said the private sector continued to be hoarding 1.2 million tons of wheat while stocks with the public sector stood at 4.723 million tons.