Prime Minister Syed Yousuf Raza Gilani has allowed the Trading Corporation of Pakistan to supply 19,400 tons of sugar to Army and Air Force on prevalent prices, official sources told Business Recorder.
The sources said the Prime Minister Secretariat has agreed to give relaxation to Pak Army from online advance payment of the procured quantity of sugar but Pakistan Air Force which has, reportedly, greater cash reserves in relation to the Pak Army, has agreed to pay the bill in advance.
According to sources, Director General Procurement of Pakistan Army had approached the government for procurement of 18,000 tons of sugar for its Canteen Stores Department (CSD) whereas PAF, requiring 1,400 tons of sugar intends to sell the sugar in fair price shops.
During Shaukat Aziz government, the Defence Ministry had demanded similar financial backup for CSD as is being extended to Utility Stores Corporation but the demand was turned down. The Defence Ministry had argued that as the government was making efforts to stabilise sugar prices in the market by allowing TCP to supply sugar to USC at reduced rates, the CSD must also be thought eligible to same price.
This time, the Director General Procurement who wrote letter to the government, did not ask for reduction in sugar price as is being given to the USC customers. "The Finance Ministry had been asked to treat CSD at par with USC and provide subsidy of Rs 200 million in 2006-07 but it did not entertain the proposal, saying that subsidy to any organisation is allowed on directions of the ECC," sources added.
The Defence Ministry, in its summary had argued that CSD and USC have been purchasing atta from flour mills at the same rate, but the latter was selling the product at subsidised rates because of subsidy being granted by the ECC, whereas the former was not in a position to provide atta at the same rate because of non-availability of the same facility.
"This has deprived not only the men in uniform and the general public in and around the cantonments but also those residing in far-flung areas to avail subsidised rate," the Defence Ministry argued. The sources said that the request of Pak Army and PAF would be forwarded to the TCP in a couple of days so that required sugar could be released from its stocks as early as possible.
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