ISLAMABAD, Dec 30: The Economic Coordination Committee of the Cabinet has asked the Ministry of Industries and Production to prepare an action plan for import of raw sugar to avoid looming sugar crisis.

The country is expected to face a shortfall of around 0.4 million tons of sugar during the next season of 2008-09 owing to 20 to 30 per cent decline in cane production.

The ECC meeting held on Tuesday, with Adviser to Prime Minister on Finance Shaukat Tarin in the chair, directed the ministry to review national and international situation of sugar and recommend an action plan regarding import of raw/refined sugar taking into consideration of farmers’ interests.

The meeting observed that wheat stock position was evidently satisfactory after finalising all wheat import procedures and ensuring adequate stocks.

The meeting reviewed Trading Corporation of Pakistan’s rice procurement and storage capacity besides considering export policy in view of bumper rice crop.

It directed the ministry of agriculture and livestock and commerce to further review key policy issues where vital to decide support prices of all domestic crops that could motivate domestic farmers for increased crop yield.

The meeting directed all stakeholders to finalise a comprehensive agriculture policy. It, however, approved the ministry of commerce’s recommendations for permitting the TCP to take necessary steps in the light of an earlier decision taken by the prime minister with regard to upgrading its storage capacity, procurement, competitive survey of export market and improving the inspection mechanism of the rice to be purchased by the TCP in terms of quality.

The Minfal had been directed to use Gwadar Port for enhanced transportation of wheat from the port to upcountry. The ECC further directed Minfal to act as equaliser, ensuring adequate wheat supply to deficit provinces and also keep a watch on stabilising nationwide wheat prices for the benefit of common man.

The ECC observed that the benefit of decrease in petroleum products was not evident in the commensurate decrease of local commodity pricing, and directed that steps be taken to provide relief to the masses.

While reviewing Printing Corporation of Pakistan’s (PCP) loan payback capacity against the principal amount of Rs30.345 million obtained from the government during 1982-86 and 1991-95 at an interest rate of 14.2 per cent to 16 per cent, the ECC directed Ministry of Privatisation to fast track PCP’s privatisation procedures taking into consideration its financial liabilities.

It further advised the cabinet division to resubmit the issue after necessary homework in consultation with Privatisation Commission. While considering Ministry of Petroleum’s recommendations for seeking ECC approval of the guidelines to monitor furnace oil pricing by Oil and Gas Regulatory Authority, it directed the ministry of petroleum and Ogra to jointly deliberate on the subject and resubmit fresh recommendations whether furnace oil should be regulated by Ogra.

The ECC deferred Ministry of Industries and Production’s proposal for issuing revised Letter of Intent (LoI) to M/s Trans Polymer Limited for setting up Polyethylene Plant in Karachi till next meeting. It, however, directed the ministry to complete its technical homework.

It was also decided to disband an earlier specially – constituted committee under the chair of Finance Minister, represented by four provincial chief ministers in consideration of its decision-making mandate having been transferred to Daily Economic Monitoring Committee (DEMC). It was decided that in future DEMC shall act as an extension of ECC on need basis.

The ECC reviewed key economic indicators (KEI) and overall pricing situation and noted that inflationary pressures were registering gradual deceleration owing to sharp decline in commodity pricing in international market particularly petroleum and palm oil.