ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has decided to allow the Trading Corporation of Pakistan (TCP) to place an order for the import of 200,000 tonnes of wheat in the public sector following the import of 500,000 tonnes of wheat by the private sector in the country to deal with the shortfall stoking increase in the price of flour, and reduced levy of sales tax and other duties on the import of sugar by the private importers.
The meeting presided over by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh also took up a proposal for the import of sugar through private importers in view of fast depleting stocks of sugar, which currently stood at 1.2 million tonnes but is likely to exhaust by early November 2020, and decided to reduce the levy of sales tax and other duties on the import of sugar by the private importers to keep the landed cost at the lowest possible level, to allow a fair and affordable price to consumers.
On the wheat issue, Secretary Ministry of National Food Security and Research Secretary Omar Hamid Khan informed the ECC that 500,000 tonnes of wheat was also being imported by the private sector and the first shipment was scheduled to reach the country's port on August 26, 2020, and the meeting was of the view that the arrival of 700,000 tonnes of wheat in the next couple of months would help defuse price volatility, overcome shortage, and discourage hoarding of this essential commodity in the country.
Thus, the ECC allowed TCP to import 200,000 tonnes of wheat for PASSCO to ease the price volatility, as well as overcome shortage and discourage hoarding of the commodity in the country.
The ECC further tasked the secretary National Food Security and Research along with Minister for Economic Affairs Makhdoom Khusro Bakhtiar to consult with the provincial governments whether they would like to purchase any amount of wheat at the rates offered to the TCP by global suppliers, since the global wheat prices generally remain on the lower side in the months of July and August.
The government has already allowed the TCP to import 1.5 million tonnes of wheat through an open international bidding process to meet the identified demand of 0.70 million tonnes of wheat by Punjab, 0.30 million tonnes of wheat by the Khyber-Pakhtunkhwa, and 0.5 million tonnes required to replenish the strategic reserves of the PASSCO.
The wheat would be imported in a staggered manner to fetch the best price as well as to save carrying cost and meet the shortage as and when required. The meeting was informed that total wheat stocks of 26.05 million tonnes included 25.457 million tonnes from fresh wheat produce and 0.602 million from the carry forward stocks, reflecting a shortfall of 1.411 million tonnes.
The availability of wheat stocks in the public sector was reported at 6.32 million tonnes compared to 7.55 million tonnes during the corresponding period of last year. The ECC also took up the issue of waiver of demurrage charges on the Afghan Transit Trade cargo stranded at Karachi ports in view of the matter being a force majeure, and the past three instances similar waivers, and asked the Ministry of Maritime Affairs to take up the issue with the port authorities and terminal operators for its amicable resolution.
On a proposal by the Ministry of Energy (Petroleum Division), the ECC took up the issue of Jamshoro Joint Venture Limited's (JJVL's) expired agreement with the Sui Southern Gas Company Limited (SSGC), and gave approval, in principle, for resumption of the LPG/NGL and production from the JJVL plant under proposed conditions subject to their endorsement from the Office of Attorney General.
The rational behind the decision was to reduce the import of LPG when domestic production was possible. The ECC also discussed and approved a proposal by the Finance Division for fixation of dividend on the SBP shares, and allowed the bank to provide dividend at the rate of 10 percent on the face value of the SBP shares in the bank's annual accounts for the year ended 30th June 2020.
Copyright Business Recorder, 2020
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