Committee authorises PSO to execute agreement with Qatari authorities
Sindh sugar mills may not qualify for sugar subsidy as ECC will offer federal subsidy on sugar only to those buying sugarcane at Punjab’s prices
A meeting of the Economic Coordination Committee (ECC) of the Cabinet was held on Wednesday with Finance Minister Senator Mohammad Ishaq Dar in the chair to review key economic indicators.
The committee also took decisions regarding export of sugar and wheat and import of LNG from Qatar.
On a proposal submitted by the Ministry of Commerce, the ECC decided that federal share of cash support on export of sugar will be allowed only to those sugar mills which purchase sugarcane at a minimum price of Rs 180 per 40 kg from the farmers. The Committee emphasised that millers who do not pay the full price to the farmers should not benefit from government support for the exports.
Sindh government has set sugarcane price at Rs 172 per 40 kg, which means that sugar mill owners in Sindh would not qualify for subsidy on sugar.
The committee approved a proposal from Ministry of Petroleum and Natural Resources for signing of the LNG Sale Purchase Agreement (SPA) with Qatar Gas Operating Company-2 for a period of 15 years and authorised the PSO to execute the SPA under government to government arrangement after completing the due process.
On another proposal from the Ministry of National Food Security the committee also approved the export of surplus wheat by the provinces of Sindh and Punjab to the tune of 200,000 tonnes and 400,000 tonnes respectively. Considering the low prices of the commodity in the international market, the committee also decided that subsidy would be provided to the exporters on the same lines as under the previous scheme which expired in September 2015. The new scheme will be implemented with immediate effect and will continue till March 15.
The finance secretary presented to the committee a review of key economic indicators. It was informed that the positive trends in the economic indicators had continued during the last quarter. During the last six months Inflation remained at 2.08 per cent compared with 6.08 per cent during the same period of last year. Large scale manufacturing sector registered a growth of 4.2 per cent in July-October 2015-16 as compared to 2.5 per cent in the same period last year. As a result of decline in imports the trade deficit during July-December 2015-16 stood at $ 11.9 billion compared to $ 12.1 billion in the corresponding period of last year.
Workers’ remittances received during July-December 2015-16 amounted to $ 9.735 billion against $ 9.162 billion last year, showing an increase of 6.3 per cent. Foreign exchange reserves crossed an all time high of $21 billion in December 2015. FBR tax collection during July-December 2015-16 increased to Rs 1,385.2 billion compared to Rs 1,171.9 billion in the same period of 2014-15 thus registering an increase of 18.2 per cent. Net inflow of foreign investment during July-November 2015-16 was recorded at $824.9 million, the ECC was informed.
Giving Federal subsidy to sugar mill owners for the export of this commodity tantamount to further fill up coffers of the already richest of the country at the cost of poor consumers because that step will further increase consumer price of sugar and wheat in the local market, of commodities, which are basic food items of the poor for their survival.
It is amazing to learn that why Pakistan>s sugar mill owners cannot compete in the international market when power generation for sugar milsl is their own at almost no cost, Then labour cost in Pakistan is the least in comparison to other countries. These are the two basic inputs after sugar cane as major raw material.
Comments are closed.