The Economic Coordination Committee (ECC) of the Cabinet on Tuesday decided to maintain the Minimum Guaranteed Price (MGP) of wheat at Rs 1300 per 40 kg for wheat crop 2016-17.
However, the committee, including wheat products in the list, extended the date for wheat export on rebate till December 31.
The Finance Minister Ishaq Dar chaired the meeting. The ECC approved a summary submitted by the Finance Division regarding lifting of withholding tax on small farmers schemes. The summary sought exemption from the purview of section 236-U of Income Tax Ordnance, 2001 to the Crop Loan Insurance Scheme and livestock Insurance Scheme which are aimed to mitigate losses in case of natural disasters.
ECC also approved extension in the export of wheat date from 30th November 2016 to 31 December 2016. It was approved that same rate of rebate would be given on export of wheat products like Suji, Maida and wheat flour fine (Atta) as available on per/Kg wheat export.
As more than 3 million tons exportable surplus wheat is available, the Ministry of National Food Security and Research proposed to allow export of the equal quantity of Suji, Maida and wheat flour equivalent to the quota of wheat issued.
ECC accorded approval to the proposal for maintaining the MGP of Rs 1300 per 40 Kg for wheat crop 2016-17.
ECC also approved re-lending the China’s Exim Bank’s loans to Pakistan Atomic Energy Commission (PAEC) for Chashma Nuclear Power Project 3 and 4 on similar terms/lines available to the loans relent to provincial governments.
The Chinese loans will be re-lent to PAEC at actual terms and conditions available to the Government of Pakistan and also the exchange rate risk will be borne by PAEC.
The petroleum ministry apprised the ECC regarding increase in natural gas production of more than 83 to 84 MMCFD from Nashpa field. It also stated that the SNGPL is also keen to receive the additional gas due to demand-supply imbalance of natural gas.
The ECC approved the ministry’s proposal for allocation of the additional gas up to 84 MMCFD produced from Nashpa field to SNGPL to cope with demand-supply imbalance on its system.
ECC also accorded approval in principle for re-enactment of OGRA [Amendment] Ordinance, 2009 [XVI of 2009] with retrospective effect containing validation and sun-set clauses from the date of promulgation of the ordinance with a condition not to change the present system of sales tax collection.
ECC approved the Memorandum of Agreement signed on 20th May, 2016, between the Ministry of Petroleum and Natural Resources and the Balochistan government for extension of Sui gas mining lease agreement for next ten years.