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Islamabad, January 11, 2013 (PPI-OT): The Economic Coordination Committee (ECC) of the Cabinet met here today under the chairmanship of Federal Minister for Finance and Economic Affairs, Dr. Abdul Hafeez Shaikh to discuss various agenda items of national importance. The following decisions were taken in the meeting.
The ECC was informed that the current price hike of Atta in the market is artificial and speculative. There is no shortage of wheat stock in the country and there are far more stocks available than the requirement.
The ECC in order to check the rising trend in Atta prices and to discourage hoarding decided to immediately release to the provincial governments, through utility stores corporation and to local traders/flour mills a total of one million tons of wheat at a price of Rs. 1050/ 40 kg of wheat from crop year 2009-10 and Rs. 1100 / 40kg of wheat from crop year 2011-12.
The ECC also decided to immediately supply required wheat to all the provinces. The ECC further decided to form a committee comprising Minister for National Food Security, Mir Israrullah Zehri, Minister for Science and Technology, Mr. Changez Khan Jamali, Minister of State for Production Khawaja Shiraz, Special Assistant to Prime Minister, Mr. Kamal Majeedullah and Secretary, Ministry of National Food Security to explore avenues through provincial governments to ensure availability of required wheat.
The Finance Secretary gave a detailed presentation to the ECC on the state of economy. He informed that inspite of global financial crisis, heavy floods, high oil prices and bad security situation, the government has been able to maintain macroeconomic stability in the country. He informed that there has been unprecedented increase in exports and foreign remittances during the last four years. The revenue collection is also at the record level and during the last six month there is an increase of 7.1 percent.
The government has disbursed Rs. 218 billion through BISP and Bait ul Mal while there has been 120 percent increase in pay and pension of employees during the last four years. It was further informed that the inflation rate which stood at 25 percent in 2008-09 has now been brought down to 9 percent only. The growth rate has increased from 1.7 percent in 2008 to 4.3 percent projected for year 2012-13. Agriculture sector also showed remarkable growth from 0.6 percent in 2008 to 3.8 percent projected for year 2012-13.
The ECC also approved a summary by Finance Division seeking abolition of investment limits for NIT-State Enterprise Fund. With the approval of the summary NIT has been allowed to trade freely in order to keep balance in the prices of 8 listed companies in which the Government of Pakistan has substantial share holdings.
Federal Board of Revenue through its summary solicited approval of ECC for reduction in rate of Federal Excise Duty for sugar mills as an incentive for export of sugar. The ECC approved the summary allowing export of sugar by providing a reduced rate of federal excise duty leviable on local supply of sugar at 0.5 percent instead of 8 percent leviable on production and supply of sugar.
The reduced rate of duty shall only be applicable on the quantity of local sale of sugar equivalent to the quantity exported by the sugar manufacturers in accordance with the export quota allotted and shall be available on submission of proof of such export. The balance local supply shall continue to be subject to Federal Excise Duty at the rate of 8 %.
The ECC approved a summary by Ministry of Commerce seeking approval for grant of freight subsidy to facilitate the export of sugar. The ECC approved Rs. 1.75/per kg, which will be provided from export development fund.
In order to overcome the shortage of natural gas for industrial sector, the ECC also approved injecting of LPG air-mix equivalent to 50 MMCFD gas into dedicated network for provision to industrial sector. The price impact will be borne by the industrial sector only and the domestic consumers will not be affected.
Secretary Water and Power briefed the ECC over the energy situation in the country. It was informed that there is a generation of 8500 mw in the country and the demand is around 12000 mw. There is a shortage of 3500 mw in the country and the Ministry is working hard to fill in the energy gap.
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