The Economic Co-ordination Committee (ECC) of the Cabinet has decided to make electricity statistics part of economic indicators for regular discussions and taking needed decisions to deal with the situation, it was learnt. Sources said that the decision to this effect was taken on the suggestion of the Secretary Water and Power who was quoted as saying that economic indicators are regularly presented to the ECC with the purpose to update the overall economic situation and for taking required decision to deal with the problems.
He said that electricity situation in the country is very grave and has been severely affecting economic and social life, thereby pressing for important decisions from the forum of the ECC to improve the situation. He said that power statistics, economic indicators would regularly update the ECC about overall demand-supply situation and subsequently decisions would be taken to address the challenges. The ECC presided over by the Finance Minister Dr Abdul Hafeez Sheikh allowed deregulation of High Speed Diesel (HSD) and decided that the government would bear in-country transportation cost of 30,000 metric tons of sugar to be exported to Tajikistan.
The Ministry of Commerce informed the meeting that the price of sugar has decreased in the international market and Tajikistan government requested Pakistan government to bear transportation cost. An official said that Pakistan would bear the transportation cost to pick sugar up to Noshera and from there onward the cost would be borne by Tajikistan government.
The Ministry of Commerce stated that the ECC decided to export 30,000 metric tons of sugar to Tajikistan on government to government basis from TCP reserves at a price differential of US $20 per metric tons below the international market price on August 13, 2012. The Ministry informed the ECC that the government of Tajikistan has requested Pakistani government to take up the cost of inland transportation, contending that international prices are generally quarterly quoted on "Free On Board" or "Cost and Freight" basis. The ECC on the request of Ministry of Commerce decided to bear the transportation cost within the country on the same price which was approved in the previous meeting. An official said that international price of per ton sugar was $617 and after $20 dollar discount, the ECC approved in the previous meeting to export sugar to Tajikistan at $597 or Rs 56, 488 per ton.
The ECC meeting also discussed a summary moved by Ministry of Petroleum and Natural Resources regarding deregulation of High Speed Diesel (HSD) ex-refinery price and Secretary Petroleum informed the meeting that at present 93% of HSD is being imported by PSO and 7% by the local |oil refineries. The meeting was informed that as per formula, the PSO import price and local refinery HSD price do not match, which was creating a disparity for small OMCs, who entirely depend on local supply for not being able to import HSD due to their capacity/infrastructure constraints.
The price of a local refinery HSD remains higher most of the time, consequently smaller OMCs are constrained to market HSD at the cost of their margin. The ECC after detailed discussion and taking input decided to allow deregularization of HSD ex-refinery price with the assurance that its benefit will reach the end consumer.
The ECC also approved procurement of additional quantity of 10,000 MT of sugar (over and above the approved quantity of 200,000 MT) by Trading Corporation of Pakistan (TCP) to compensate eight sugar mills, which were affected due to decrease in their normal quota. It may be mentioned that Sindh High Court instructed TCP to allocate 10,000 metric ton for procurement from M/s Adam Sugar Mills after hearing a case filed by the same. To ensure compliance to the orders of the court, TCP issued acceptance letter to M/s Adam Sugar Mills Ltd for procurement of 10,000 MT of sugar out of the quota deducted from remaining 08 sugar mills on pro-rata basis. The decision will compensate the affected sugar mills.
A summary moved by the Ministry of Petroleum proposing lifting of ban on import of CNG cylinders and conversion kits for which L/C has been opened or bank agreement as per State Bank regulations has already been concluded before 31st December 2011. The Ministry also proposed that the import of parts/components of CNG kits may be allowed for export oriented business of CNG conversion kits. The ECC decided that the concerned Ministry will provide further data on the revenue being earned by export of locally manufactured CNG kits and an appropriate decision will be made on the basis of facts and figures.
Secretary Finance briefed the ECC over the review of price situation, position of commodities stock and latest economic indicators in the country. The ECC was informed that the CPI is 9.3% in 2012-13, while SPI and WPI are 7.9% and 7.5% respectively.
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