RECORDER REPORT

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has given the go-ahead to the private sector to import wheat to control prices of wheat and flour in the market, and to ensure availability of wheat and wheat flour at a reasonable price across the country throughout the year.

The ECC chaired by the Adviser to the Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh, also decided not to restrict the import of wheat to any limit by the private sector, and further decided to monitor the situation on a monthly basis to ensure availability of wheat and wheat flour in all parts of the country at a reasonable price.

The ECC decided that the provincial governments be requested to announce their “Wheat Release Policy” immediately; that Punjab to release 900,000 tons of wheat to flour mills of the province during the next two months at a release price as proposed by the Punjab government in order to prevent surge in price of wheat/flour as proposed by Punjab; Government of Sindh be requested to announce their policy, the PASSCO to assess the immediate requirement of Khyber-Pakhtunkhwa and Balochistan and arrange to improve supply of wheat as per agreed targets, and movement of wheat be facilitated between Punjab and KP/Balochistan.

The ECC also decided that overall free movement of wheat should be ensured across the border, and to ensure movement across districts and provinces; that private wheat importers may be facilitated and arrangements between importers and KP/Balochistan should be arranged and the impact of subsidy for the import, if any, be calculated; import of wheat by private sector be allowed and the situation be monitored on a monthly basis; the financial implications of import/non-imports by private sector should also be assessed, and if there is no import by private sector, then the government should import wheat itself.

Moreover, the ECC decided that monitoring and supply provisions be improved to ensure availability of wheat at shortage points, and other market imperfections unconnected to supply and demand of wheat/flour should also be looked into, i.e., focus on inter-relation between wheat; and wheat flour and effort be made to increase conversion rate from wheat to wheat flour; to check the cross-border movement of wheat flour to ensure that it does not flow out to Afghanistan and points of exit; and to develop a group for a longer term strategy for the whole year and also for a medium term.

The ECC also considered and approved five proposals by the Interior Division for technical supplementary grants (TSGs), including one TSG of Rs2.5 billion to clear accrued verified liabilities of Punjab Mass-transit Authority (PMA) as federal share on account of operation of Pakistan Metro-bus System; two separate TSGs of Rs200 million and Rs36.400 million for the ICT Police to clear outstanding liabilities of Shuhada families; and two separate TSGs of Rs105.621 million and Rs60.581 million for ICT Police to clear outstanding liabilities during CFY 2019-2020.

The ECC also approved a proposal by the Finance Division for TSG of Rs1,300 million to meet critical demands related to medical stores and utilities for the Pakistan Navy.

On another proposal by the Defence Division, the ECC allowed the CDA to collect charges against allotment of 45 acres of land in Jagiot Farm Islamabad to Directorate General of ISI as per Rs2,250 per square yard rate with the total implication of Rs490.05 million as already approved by the prime minister in May 2018.

The ECC also approved a TSG amounting to Rs490.05 million for the purpose.

On a proposal by the Industries and Production division, the ECC approved a package combining reduced duties and taxes for a period of three months to ensure uninterrupted supply of oxygen gas and oxygen cylinders in the country for medical purposes.

The ECC also directed the Ministry of National Health Services Regulations and Coordination and Ministry of Interior to clear all the outstanding dues payable to oxygen manufacturing companies as per the legal provisions of contracts.

The ECC directed the concerned ministries and departments to ensure supply of oxygen for medical purposes by actively engaging with the oxygen plants and with hospitals for keeping the oxygen charges at the minimum level.

The ECC also considered and approval a proposal by the Finance Division for a new policy on lending to the provincial governments for their “ways and means requirements” and for signing of agreements by the Finance Division and the State Bank of Pakistan to implement the new lending policy.

Under the new policy, the existing ways and means limit for Punjab has been changed from Rs37 billion to Rs77 billion, from Rs15 billion to Rs39 billion for Sindh, from Rs10.1 billion to Rs27 billion for the Khyber-Pakhtunkhwa, and from Rs7.1 billion to Rs17 billion for Balochistan.