ISLAMABAD, Aug 2: Pakistan on Tuesday allowed duty- and tax-free import of raw and refined sugar from India through the private sector and the Trading Corporation of Pakistan (TCP) to contain its ever-rising prices. The sugar prices increased from Rs21-22 per kg to Rs29-32 in the local market over the last four months.
The Economic Coordination Committee (ECC) of the cabinet took a formal decision to this effect, sending a message to sugar mill owners to release their stocks. Prime Minister Shaukat Aziz presided over the meeting which also allowed import of arms and ammunition by the private sector.
Economic Adviser Dr Ashfaque Hassan Khan told Dawn that the process for import of raw and refined sugar from other countries was already in progress. Pakistan, he said, had imported about half a million ton of refined sugar from India in 2001. The adviser did not agree that India itself was importing the commodity. India, he said, was importing only raw sugar and exporting it after refining.
He said India would have a surplus of four million tons of sugar by September and added that some private companies were already in touch with Indian exporters and only a decision was required for import. The TCP would be importing up to 100,000 tons of sugar from India in addition to 200,000 tons it was already in the process of importing from other countries. He said the TCP had 318,000 tons of sugar in reserve.
Informed sources said the prime minister had received reports that a group of mill-owners were hoarding large quantities of sugar and had even made bulk purchases from Dubai in recent weeks to manipulate prices. The premier took personal interest to allow sugar import from India, without any tax or duty.
PRICES: The meeting noted that the prices of essential commodities were falling as the sensitive price indicator (SPI) had dropped by 0.24 per cent in the week ending on July 28. As such, inflation measured by SPI stood at 8.22 per cent on July 28 compared with 8.8 per cent a week earlier.
The ECC decided to expand the Utility Stores Corporation (USC) to enhance its operation in all parts of the country. The ministry of industries was directed to prepare a plan for the USC’s expansion.
The committee was informed that the large-scale manufacturing had registered a growth of 18.7 per cent in May. The ECC also allowed private manufacturers to import banned parts and accessories of arms and ammunition of non-prohibited bores. The facility would be available only for 100 per cent export-oriented units.
The existing policy did not allow even the recognized manufacturers to import parts or accessories of prohibited as well as non-prohibited bore weapons. However, import of ammunition of non-prohibited bore in ‘completely built-up’ condition by commercial importers was allowed subject to monetary ceilings and under the procedure prescribed by the commerce ministry.
Sources said that the measure would help expand the local factories which were facing difficulties because of restrictions.
