Approves regulatory cover to barter trade with Afghanistan, Iran
ISLAMABAD
The Economic Coordination Committee (ECC) of the federal cabinet has allowed Ministry of Industries and Production to build strategic reserves of sugar to avoid price variation and hike in its prices in future.
Finance Minister Shaukat Tarin chaired the ECC meeting on Thursday
It was decided that the federal government will purchase 0.30 million metric tonnes of sugar and the provincial governments of Punjab and Sindh will purchase 0.20 million metric tonnes of sugar for strategic reserves from sugar mills in the current crop year when the prices are lower in the local market.
The ECC allowed regulatory cover to barter trade arrangements with Afghanistan and Iran by amending relevant provisions of Export Policy Order (EPO) 2020 and Import Policy Order (IPO) 2020. The summary for granting regulatory support for establishing barter trade arrangements with the two neighbouring countries was presented by the Ministry of Commerce before ECC.
On another summary presented by Ministry of Industries and Production regarding continuation of un-targeted subsidy on five essential commodities i.e wheat flour, ghee, sugar, rice and pulses, the ECC after discussion allowed continuation of subsidy on five essential items for the period from 24 to 28 of February, 2022 and for the month of March 2022. Further, the chair directed the Utility Stores Corporation to seek guidance from the Ministry of Law and Justice on continuation of subsidy on these items for the initial 23 days of February.
On the request of the Ministry of National Food Security and Research, the ECC allowed the withdrawal of its earlier summary for 50,000 MT wheat to Afghanistan and granted permission for already provided 6,627 metric tonnes of wheat, worth Rs0.67 billion, to Afghanistan.
The Ministry of National Food Security and Research presented another summary on fixation of PASSCO’s wheat procurement targets along with cash credit limits. The ECC assigned PASSCO the target of 1.20 MMT of wheat with the cash credit limit (CCL) for Rs65 billion at the rate of MSP of Rs1,950/40kg.
The ECC after discussion approved supplementary/technical supplementary grants which included Rs684 million in favour of the Ministry of Economic Affairs as the first instalment/mobilisation advance against the disbursement schedule provided by NADRA for the FY2021-22.
It also approved Rs20 million for Ministry of Housing and Works for execution of development schemes in Sindh under SAP; Rs200 million in favour of Ministry of Housing and Works from PSDP and Rs450 million for Ministry of National Health Services, Regulations and Coordination for a project to strengthen the existing capacity of National Institute of Health for effective response against Covid-19 pandemic.
The meeting was attended by Minister for National Food Security and Research Syed Fakhar Imam, Minister for Economic Affairs Omar Ayub Khan, Minister of State for Information and Broadcasting Farrukh Habib, federal secretaries and other senior officers.
