ISLAMABAD : Economic Coordination Committee of the Cabinet (ECC) has approved import of 0.4 million tons of Urea through TCP and its distribution by NFC/NFML for Kharif 2010.
ECC meeting under the chair of Prime Minister Syed Yousuf Raza Gilani at PM Secretariat has approved the import of 0.4 million tons of Urea through TCP and its distribution by NFC/NFML for Kharif 2010, the ECC decided that Urea up to 0.1 million tons out of 0.4 million tons for remaining Rabi and Kharif season 2009-10 be imported by TCP through Karachi Port immediately.
The ECC also endorsed its earlier decision of restoration of Pakistan Oilseeds Development Board (PODB).
While considering incentive package for investment in Petrochemical Complex Naphtha Cracker (NC), Polythylene (PE) Polylene (PP), the ECC allowed extension in the financial closure for a period of 12 months with effect from date of issuance of the approval.
Regarding deepening and widening of Port Qasim Navigation Channel, the ECC decided to accord approval for Sovereign Guarantee, enabling loan financing for the project.
In the light of recommendations of the Tariff Anomalies Committee, the ECC approved imposing 5% regulatory duty on the import of pigment thickener (PCT 3906.9030) and acrylic thickener (PCT 3906.9040).
In order to discourage export of waste and scrap of aluminium and copper and promote export of value-added products manufactured from locally available raw materials, the ECC approved imposing 25% RD on the export of waste and scrap of aluminium and copper along with bars, rods, ingots, slabs and billets, etc made of these materials.
During the meeting, the Ministry of Industries and Production made a presentation on the National Fertilizer Strategy. The ECC set up a Ministerial Committee to make final recommendations.
While discussing post balancing, modernization and replacement (BMR) concession for feed gas for M/s Pak American Fertilizer Limited and allocation of 16 mmcfd gas from SNGPL system for Pak Arab Fertilizers Limited, the ECC accorded approval to the following recommendations of the ECC's Committee on this issue:
The deadline for signing of GSA as given in Fertilizer Policy 2001, under clause 2.1.4 may be extended to 30th June, 2012.
- The Ministry of Petroleum and Natural Resources and the Ministry of Industries & Production need to review the cross subsidy/ fertilizer feed gas price provisions under Fertilizer Policy 2001.
While considering the report of Ministry of Food and Agriculture to apprise the ECC on the mechanism for procurement of rice directly from the small farmers, the ECC decided:
- The State Bank may ensure in time availability of Commodity Finance by the consortium of banks to enable PASSCO to start physical operation from 1st October in Sindh and 1st November in Punjab.
- Limit on maximum quantity to be accepted from a single farmer up to 500 Mds should be strictly enforced.
- Verification of land record by the Provincial Agriculture Department/Revenue Authorities to ascertain the authenticity of the growers by a committee constituted by the Provincial Government be ensured.
- Provincial government/local administration will monitor the rice mills operation and facilitate PASSCO in its operation of procurement of paddy.
- Capacity Building of PASSCO & Provincial Agriculture/Food Departments, to enable these organizations for timely and responsive intervention in procurement of paddy/other crops.
The ECC reviewed the indicators of the national economy. The ECC was informed that core inflation excluding food and energy decreased from 10.7% in December 2009 to 10.3% in January 2010. House rent index has also declined from 18.4% in May 2009 to 13.4% in January 2010.
CPI based inflation stood at 10.8% in July-January 2009-10 as compared to 23.9% in the same period last year.
During July-January 2009-10, the average CPI-based inflation stood at 10.8% as against 23.9% in the same period last year. Food inflation stood at 10.9% as against 29.8% last year.
Whereas non-food inflation stood at 10.7% as against 19.3% in the corresponding period of last year.
The Sensitive Price Index (SPI) for the week ending March 04 increased by 0.40% over previous week (Feb 25, 2010) and averaged 16.99% over the corresponding week of last year.
Inflation (Y-o-Y) on the basis of SPI has been showing decreasing trend since first week of February this year.
There are 11 items whose prices have observed decline in the week ending March 04, 2010. These include tomatoes (10.5%), kerosene (2.3%), diesel (2.5%), L.P.G. (11 Kg cylinder) (1.9%) petrol (0.8%), sugar (0.4%) and so on. Prices of 20 items remained unchanged in the week ending March 04, 2010.
The stock of wheat as on March 01 this year amounted to 5.1 million tons as against 1.2 million tons in the same period last year, thereby showing a higher stock of about 3.9 million tons compared with last year.
As far as allocation and lifting position of wheat made from PASSCO for the year 2009-10 are concerned, the provinces/agencies have so far lifted 62.0% (1,085,864 m/tones) of their total allocated quantity (1,762,801 m/tones).
The quantum index of largescale manufacturing (QIM) has registered a positive growth of 1.4% during July-December 2009-10, against negative growth rate of 5.4% during comparable period last year. Whereas it grew by 6.8% during December 2009 over the same month last year.
Imports recorded growth of 31.3% in January 2010 over the same month of last year. Trade deficit improved by 22.0% to $ 8.4 billion in July-January 2009-10 from $ 10.8 billion in the same period last year.
Workers remittances amounted to $ 5,198.1 million in July-January 2009-10 as against $ 4,277.3 million, showing an increase of 21.5% over the same period last year.
Foreign exchange reserves stood at $ 14.8 billion as on March 03, 2010 up from $ 6.4 billion on November 25, 2008.
While Prime Minister Syed Yousuf Raza Gilani said during the meeting that with the government’s commitment, important economic targets within a period of two years had been achieved and the economy was back on the path of stability and progress.
In his opening remarks while chairing the meeting of Economic Coordination Committee of the Cabinet (ECC) at PM Secretariat, the Prime Minister said the foreign exchange reserves were at a respectable level, while workers remittances had shown impressive growth and revenue collection with prominent improvement.
The Prime Minister also observed that the investors’ confidence was improving and manufacturing had started picking up.
He termed this turn around as a result of prudent economic decision making by government.
He further said ECC decisions reflect the true aspirations of democratically elected government for the welfare of people and poverty alleviation.
Gilani acknowledged the services of Shaukat Tareen both as Finance Minister and Chairman of ECC for conducting meetings in judicious manners and taking a number of prudent economic decisions.
He said the ECC was the highest and the most important forum for economic decision making, which had direct impact not only on economy but also on the quality of life of common man.
The Prime Minister said that he introduced the system of obtaining endorsement of the Cabinet to all decisions of the ECC with a view to provide broad-based ownership to these decisions and then decided to bring these decisions to the Cabinet for information and discussion.
He wished to continue the practice of bringing ECC decisions before the Cabinet for information.
The Prime Minister opined that there was a need to find a good balance in decision making at this forum, both from the political as well as from the economic and financial perspective, keeping in view the resources and increased expenditure requirement due to war on terror and settlement of IDPs.
He observed that these decisions must reflect the true aspirations of the democratically elected government for the welfare of the people and poverty alleviation.
Expressing his satisfaction, the Prime Minister said the government had taken a number of bold decisions with political commitment, which had directly impacted people at large.
He mentioned that the government’s subsidy of Rs. 3 billion through Utility Store Corporation on the occasion of Eids, the price control on sugar, intervention price mechanism on wheat and rice have resulted into people welfare and have recorded impressive growth in the agriculture sector reducing poverty from the rural areas.
The Prime Minister urged the members of the ECC to ensure smooth and effective implementation of decision made here and in the Cabinet.
He assured that all decisions will be taken in the best national interest and for the greater benefit of the common man.
The Prime Minister directed the concerned authorities to ensure implementation of the Cabinet decision regarding import of sugar so as to ensure smooth supply of white sugar in April.
The ECC was informed that sufficient stocks of sugar were available and the government would be able to purchase sugar at the most competitive rates which would reflect a saving of US $ 180 million.
Copyright APP (Associated Press of Pakistan), 2010 |
Print Version 
Send This Story 
