The Economic Coordination Committee (ECC) of the Cabinet which met here Tuesday under the chairmanship of Federal Minister for Finance and Economic Affairs, Dr. Abdul Hafeez Shaikh approved abolition of fixing quotas for the export of sugar by the mills.
It was informed that there is an abundance of sugar in the country and it is necessary that the sugar mills are allowed to export sugar. In this regard, it was decided that in every ECC meeting, the Commerce Secretary will present a briefing on the availability of sugar stocks for revision or otherwise of the sugar export.
The ECC asked Trading Corporation of Pakistan to procure and maintain a strategic reserve of 500,000 MT of sugar by purchasing 330,000 MT of domestic sugar during the season of 2012-13.
The ECC was also informed that current stock position of wheat, sugar and fertilizer is satisfactory. The Secretary further informed the ECC that there is a 1.3% increase in exports in the period July-October and there is 2.2% decrease in the imports during the same period. Whereas there is a visible 15% increase in workers’ remittances and there is an increase of 7.7% in net revenue collection by FBR. Secretary Finance also informed the ECC that KSE 100 index is registering phenomenal growth during the current financial year. The overall increase in the last five months remained 21.8% which is the highest in the world.
Secretary Finance presented a review of key economic indicators before the ECC. He informed that the year-on-year inflation rate based on consumer price index whole price index and sensitive price index is estimated at 6.9%, 7.6% and 7.3% respectively. The ECC was informed that in the regional countries Pakistan’s year-on-year inflation rate remained the lowest.
The ECC also accorded approval in principle to a summary of the Ministry of Petroleum and Natural Resources for renewal of gas price agreement between Qadirpur Joint Venture and SNGPL which will be effective from 1st July 2013.
The ECC also accorded approval in principle to a summary of Ministry of Petroleum and Natural Resources for corporate purchase of Tullow Pakistan Development Limited and Tullow Bengladesh Limited by Pakistan Petroleum Limited with the observation that it will subject to approval by the State Bank of Pakistan.
The ECC also approved a summary of Ministry of Industries for provision of a subsidy amounting Rs.186.87 million on atta provided at Utility stores during Ramadan 2012.
The ECC also decided to conduct energy specific meeting shortly. The energy specific ECC will contemplate upon the issues related to load shedding of gas and electricity and will devise mechanism to minimize effects of energy shortage on different segments of society.
