The government has decided to allow import of bitumen, at concessionary tariff, for continuation of development activities, official sources told Business Recorder.
The issue was discussed at a meeting of Economic Coordination Committee (ECC) of the Cabinet on September 11 on a report submitted by Planning Commission in its analysis of regional prices of critical consumer items.
Sources said that the country was facing shortage of bitumen due to accelerated development work in different parts of the country and limited capacity of the two local manufacturers and disruption of supply by one of them in the recent past had led to a serious shortage. They said that the Prime Minister, who was presiding over the meeting, agreed that the matter called for an urgent decision.
After discussing availability of bitumen and future needs, the ECC cleared the proposal for import at concessional tariff, and constituted a committee, under the chairmanship of Deputy Chairman, Planning Commission, Dr Akram Sheikh, and comprising representatives of Ministries of Communications, Petroleum and Finance, to finalise recommendations.
"The proposals may include a thorough analysis of the matter along with its financial implications to be put to the Prime Minister so as to facilitate decision through due diligence," sources added.
They said that the Federal Board of Revenue (FBR) has already been asked to study different options to reduce duty on bitumen import before presenting it to the committee, which would submit its report to the PM for approval. It is pertinent to note that the ECC, in one of its meeting a couple of months ago, had approved use of cement in the construction of roads, in place of bitumen.
Sources said that the Prime Minister also suggested that comparison of the prices of diesel and petrol may also be added to the list of six identified food items for focused analysis and review.
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