ISLAMABAD, April 16: The Economic Coordination Committee (ECC) of the cabinet on Tuesday decided to issue Rs30 billion bonds on behalf of Karachi Electric Supply Corporation (KESC) and take over its Rs81 billion losses and loans as government’s equity.
In this way, the government shareholding in KESC would increase to around 99 per cent. These measures were part of KESC’s restructuring plan amounting to Rs111 billion that has already been approved by the Federal Cabinet, official sources told Dawn.
The federal government’s total loans to the utility as of June 2002 are estimated at Rs53 billion of which Rs17 billion have already been converted into equity. The remaining amount of around Rs35 billion have now been converted into government equity. Consequently, the total paid-up capital of KESC would increase to Rs88 billion from the current level of Rs4.8 billion.
The ECC also approved Wheat Procurement Policy 2002 with a total procurement target of 5.5 million tons. A number of incentives for farmers were also approved but were being kept secret, which would be announced by President General Pervez Musharraf as part of his referendum campaign.
It also approved Rs3,500 per ton as upgradation cost for the export of wheat through sea-route against an upfront payment of Rs8,500 per ton to Passco. The upgradation cost of Rs3,500 per ton would be repaid to the exporters on submission of actual bills of export within three months from the date of lifting wheat from the government godowns.
The meeting also relaxed an earlier decision of ban on re- lending foreign loans as a special case to National Highway Authority (NHA). The NHA had sought around Rs16 billion to complete remaining portion of the Indus Highway including Kohat Tunnel with a loan facility of Japan.
The organization is defaulter of around Rs104 billion. The Kohat tunnel is already behind schedule and had put the NHA in financial troubles, hence the re-lending facility.
The committee was informed that net revenue collection of nine months (July-March 30) stood at Rs269.5 billion while Rs62.5 billion were repaid as refund on sales tax and customs duty.
An official announcement said that ECC noted that red chilies imported to meet the demand within the country were free from injurious insects and diseases and was fit for human consumption as certified by the plant protection department of the ministry of food and Pakistan Council of Scientific and Industrial Research (PCSIR).
The committee noted with satisfaction the stability of various consumer item prices notwithstanding increase in the prices of onion, tomato, etc. It was satisfied over comfortable stocks of fertilizer, sugar, oil, wheat, rice and vegetable ghee and oil.
The official statement said that prices of gur, sugar, mash pulse and wheat flour decreased by 20.2 per cent, 17.2 per cent. 10.3 per cent and 1.30 per cent respectively.
The committee also approved revised sampling procedures, coordination between provinces over crops estimation and prices through engagement of farmers associations in collection of agricultural statistics to overcome deficiency of current crop estimations.