ISLAMABAD, Jan 28: The PPP-led coalition government has decided to approve on Wednesday an important policy that will regulate trade for the next three years, it is learnt.

The Strategic Trade Policy Framework 2012-2015 was placed on the priority list of the agenda for the cabinet meeting to be headed by Prime Minister Raja Pervez Ashraf, a senior official who was privy to the development told Dawn on Monday.

Commerce ministry had already given a presentation to the premier on December 21, 2012 and sought his approval for early approval of the policy.

The tenure of the government will come to an end on March 16.

“We have submitted the summary for approval of the cabinet”, the official said, adding it was likely that the policy will be announced after the cabinet approval by the commerce minister.

Official documents reveal that funding for cash subsidies and support has been reduced to Rs26.5 billion from earlier projected Rs60 billion to various sectors in the next three years.

At the same time, the sectors for cash assistance has also been reduced to 14 from earlier 26 sectors for cash interventions during 2012-13, 2013-14, and 2014-15, respectively.

The commerce ministry has also identified 19 sectors either to seek ban on its import or exempt them from the levy of duties.

Among them, vintage cars of age over 50 years and less than 75 years will be allowed for import. Normally, the cars made in 1911-1930, are considered to be ‘vintage era’. Currently, government only allows used cars of age three years. The ministry proposed complete ban on import of plastic scrap, hospital waste, used sewerage pipes, chemical containers, job lot and stock lot goods.

On the promotion of exports, the most important decision will be the approval of the establishment of an Export-Import Bank (EXIM Bank); Land Port Authority of Pakistan, Leather Export Promotion Council, and Services Trade Development Council.

The Wednesday cabinet meeting will also resolve the funds utilisation controversy between commerce and finance ministries.

While the commerce ministry sought an amount of Rs26.14 billion for promotion of trade initiatives, the finance ministry suggested an amount of Rs10 billion for the next three years on trade promotion initiatives, to be announced as part of the strategic trade policy framework (STPF) 2012-15.

For the first year, the commerce ministry sought funding of Rs5 billion, but the finance ministry wanted it to be restricted to Rs2 billion for 2012-13.