The Economic Co-ordination Committee (ECC) of the Cabinet, which met with Prime Minister Shaukat Aziz in the chair, here on Thursday allowed duty-free import of cement through private sector, besides auctioning of 50,000 tonnes of sugar from the Trading Corporation of Pakistan (TCP) stocks two weeks before Ramazan.
Dr Ashfaque Hasan Khan, Economic Adviser to the Finance Ministry told Business Recorder that the demand for cement was likely to increase from September on account of Public Sector Development Programme (PSDP) projects taking off in the later half of the current year and acceleration in construction activities by the private sector.
He said the decision would improve supply position and stabilise price in the market, which touched Rs 300-320 per bag in June.
He said that the TCP would sell 50,000 tonnes sugar through auction in small lots of 50-500 tonnes, two weeks before the start of Ramazan. However, mill-owners and their representatives would not be allowed to participate in the auction.
To a question, he said that there was no plan to import more than 0.2 million tonnes refined sugar through the TCP in the market by the end of November.
The prime minister would write letters to the chief ministers to ensure availability of essential goods and price stability during Ramazan, he said.
Ashfaque said that 20 percent duty has been imposed on raw hides/skins and wet blue leather to protect the local industry, adding that the decision would help in value-addition for export purposes.
He said that the ECC meeting, which according to him was "highly energy dominated", has decided to extend life-term concession to hydel projects in the private sector up to 50 years from the existing 25 years to attract more investment in the power sector.
The ECC has also constituted a Cabinet Committee on Energy (CCE) under the chairmanship of the Prime Minister for co-ordinated work on energy issues.
He said that several departments were working on energy-related issues, but there was no meaningful interaction, which was one of the reasons to constitute a high-level committee.
The Prime Minister also announced that the National Electric Power Regulatory Authority (Nepra) and Private Power Infrastructure Board (PPIB) would be restructured and made a professional entity.
When asked if this proposal came from Adviser to the Prime Minister on Energy Mukhtar Ahmad, he dispelled the impression and said that the Prime Minister gave these comments.
Regarding allocation of gas to Captive Power Plants (CPPs), which were being established by the industries, he said that the condition to allocate 10mmcfd gas to the plants up to 50MW has been withdrawn.
To another question, he said that the Prime Minister has constituted a committee under the chairmanship of Textile Minister Mushtaq Cheema, who has been allowed to pick members of the committee on his own and prepare a mechanism to produce clean cotton. The committee will submit its report within one week to the Prime Minister.
During the meeting, the Prime Minister also announced setting up of Energy Terminal in Karachi, which would be ready by 2009.
During discussion on energy security, Shaukat was also quoted as saying that Pak-Iran gas pipeline project was at an advanced stage and hoped that gas from the proposed project would be available from 2009.
Ashfaque also said that Qadirpur gas field would be specified for fertiliser plants and two independent power producers (IPPs).
Regarding leasing out of two concrete sleeper factories of Pakistan Railways, he said Pakistan Railways has been asked to advertise it in the newspapers.
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