ISLAMABAD: Economic Coordination Committee (ECC) of the cabinet approved importing three million tonnes of wheat to deal with preemptive shortage and rising prices.
Federal Minister for Finance and Revenue Miftah Ismail presiding over meeting of the ECC. Ministry of National Food Security and Research submitted a summary on modalities framed for the import of 3 MMT of wheat. The production of wheat decreased from 27.5m tonnes in 2020-21 to 26.4m tonnes in 2021-22.
PASSCO will be the recipient agency for the imported wheat. The ECC further directed the ministry to get the requirements of Wheat by the provincial governments.
On another summary for Ramzan Package subsidy on wheat flourm the meeting decided that in case subsidy is not approved by the Punjab Cabinet, the shortfall will be bridged by the federal government but Governemnt of Punjab will ensure that provincial cabinet approves the package as soon as its meeting is convened.
Relief package extended
Ministry of Industries and Production submitted a on the continuation of PM’s relief package 2020 for the months of May and June, 2022 through Utility Stores Coportation (USC).
The ECC after deliberation allowed continuing existing subsidy for two weeks on essential commodities (flour, sugar, rice, and pulses), and Rs100/kg subsidy on ghee at utilities. Finance Division will also release the outstanding amount on account of subsidy under PM’s Relief Package approved for the previous months.
Ministry of Industries and Production submitted another summary on Chinese offer for import of urea by TCP on G2G basis. The meeting after deliberation allowed TCP to import 200,000 MT granular urea from China on deferred payment basis within 90 days.
K2, K3 construction
The Pakistan Atomic Energy Commission (PAEC) submitted a summary for grant of extension in the construction period of K-2 from November 30, 2020, to May 21, 2021, and K-3 from September 30, 2021, to April 18, 2022, for ensuring disbursement of pending loan of $383 million (approx.) before expiry of loan from Exim Bank China to the contractor who has completed the project.
Ministry of Economic Affairs submitted a summary on exemption from all kinds of taxes and duties on the complete portfolio being executed by the Saudi Fund for Development (SFD). In Pakistan, SFD is providing assistance for various projects including Energy, Health, Education, and Infrastructure projects.
The ECC considered the comments of FBR on the subject snf suggested that tax exemption clause for SFD may be inserted in the Money Bill considering the strong and strategic relationship between Pakistan and Saudi Arabia, encompassing economic cooperation and investment.
Ministry of Commerce submitted a summary on the duty structure of edible palm oil import. The ECC allowed removing 2% Additional Custom Duties on import of palm oil for shipments originating from all sources except Indonesia for June 10-20, 2022, subject to the approval of the federal cabinet.
Supplementary funds
The ECC also approved Rs 62.27 billion supplementary grants for Ministry of Energy (Petroleum Division) for making payment to OMCs refineries for the second fortnight of May 2022. It also approved transfering R24 billion to BISP,
It approved Rs2.44 billion in favour of Ministry of Religious Affairs and Interfaith harmony for grant of one-time support to Pilgrims under government Hajj Scheme.
It also approved Rs. 107.84 million for Ministry of Interior for maintaining law and order situation and Rs200 million as grant-in-aid for Ministry of Law and Justice.
It approved a supplementary grant of Rs. 53.912 million and Rs. 280.00 million in favor of Ministry of Housing and Works, and Rs50 billion in favor of Power Division with condition that the requisite funding will be provided against future subsidy claims.
