ISLAMABAD, Jan 5: The Economic Coordination Committee of the Cabinet (ECC) here on Saturday meeting decided to issue financial guarantee directly to China Petroleum Engineering Construction Corporation (CPECC) to enable Pak-Arab Pipelines Company (PAPCO) to arrange export credit financing of $102 million to cover the foreign exchange cost of 817 km-long White Oil Pipelines Project through China EXIM Bank.
The 26 inch diameter pipeline would run form Port Qasim to Mahmood Kot.
The ECC, which was presided over by Minister for Finance Shaukat Aziz, also decided to facilitate trade with Afghanistan by approving the list of additional items for inclusion in Afghanistan duty draw back scheme.
The items are: soap detergents ghee & cooking oils, other than manufactured in bonds; electric fans, wires & cables; aluminium utensils, all plastic goods including shopping bag, PVC; shoes, PVC pipes and polyethylene sheets; adhesive tapes; all cotton and woollen textile products including cloth, garments and made-ups; all plastic products including PVC shoes, zippers, pipe mats; ropes except shopping bags, polyethylene sheets; construction material, construction steel, chipboard, formica (HPL); lasani board etc. hardware items, sanitary ware, building lights; electrical filling, marble and granite tiles and products; white chalk, FC sheets for low cost roofing, shelters, etc. FC pipe systems, for water supply, sewerage, etc, polyethylene pipe systems for water supply, sewerage, gas distribution, polypropylene pipe systems for hot and cold water supply, industrial effluents; all machinery, electric equipment, gods and appliances including threshers, electric wire and cables, video and audio cassettes; cartons and packaging paper (all items including Kraft Paper), X- Ray films, repro films; all herbal and allopathic medicines and pharmaceuticals, plastic utensils including water coolers; pesticides; poultry feeds, veterinary medicines; pulses; surgical instruments; stationary items and gasoline.
In absence of Pak embassy in Afghanistan, the ECC also decided suspension of requirement of Consulate certification. However, exports to Afghanistan would only take place through two notified custom stations — Torkham and Chaman. Any movement of goods other than these two points into Afghanistan will be considered smuggling and dealt with in accordance with law.
According to an announcement made by the ministry of finance, the export of ghee would be allowed other than manufactured in manufacturing bond. The ECC further decided that the Central Board of Revenue and Ministry of Commerce and Industries would continuously review and monitor flow of goods exported to Afghanistan. In case of misuse of this facility the item would be deleted and put on the negative list. The analysis will be based on the demand parameters of specific items in Afghanistan. The ECC further directed CBR and Ministry of Commerce to immediately prepare a negative list for trading with Afghanistan for approval of ECC.
The meeting also reviewed sensitive price indicator, prices of sensitive items, oil, wheat, and other essential items. It noted that the prices of essential items remained stable, stock of oil, wheat, fertilizer and rice were satisfactory. The ECC noted with satisfaction that due to stability of the exchange rate and supplies, during Ramadan, prices of vegetable ghee, wheat and other essential items remained stable. The committee also noted that the rupee in terms of dollar strengthened by about 12 per cent since September 11, 2001 which helped in bringing down the prices level.
The ECC was briefed about Pakistan’s participation in the 4th WTO Ministerial Conference held at Doha from November 9-14, 2001. It was observed that Pakistan must prepare to enter into WTO dialogue with renewed confidence. The ECC decided to consult all stakeholders including relevant ministries, private sector and research institutes to benefit from their analytical and research skills to prepare a uniform work plan for the future meetings.
It further decided that an inter-ministerial body, coordinated by the ECC would finalize strategy for future WTO matter as it impacts all facets of the economy.
The ECC decided to give one time waiver to Ministry of food and Agriculture on demurrage charges of Karachi Port Trust (KPT).
However, it was decided that in future all government departments/organizations in their budget allocation would cater for the port charges and lift their stocks within the stipulated time.
The ECC expressed satisfaction over performance of the Pakistan Steel and reiterated that financial restructuring approved earlier by it would continue.
The ECC approved the release of Rs 250 million to the Heavy Electrical Complex, Hatter for payment of loan to China National Machinery and Equipment Import and Export Corporation (CMEC). The ECC further directed that the Ministry of Industries and Production should come up with a concrete proposal by March 15 to make the heavy Electrical Complex (HEC) a financially viable and profitable unit.
The meeting among others was attended by the Ministers for Agriculture, Privatization, Communications, Commerce, Petroleum, Advisor to C.E. on Agriculture, Governor State Bank, Deputy Chairman Planning Commission, Chairman, Board of investments, Secretary General Finance and federal Secretaries.