The Economic Co-ordination Committee of the Cabinet (ECC), which met under the chairmanship of Prime Minister Shaukat Aziz here on Friday, reviewed prices of essential commodities in the country and expressed satisfaction over their prices and availability in the market.
Later briefing newsmen about decisions of the four-hour ECC meeting, Adviser to the Finance Ministry Dr Ashfaq Hassan Khan said that Permanent Price Committee, headed by the Adviser to the Prime Minister on Finance Dr Salman Shah, has been set up to monitor the prices of all items on weekly basis.
Planning Commission deputy chairman Akram Sheikh would be the Vice Chairman of the committee with Secretaries Finance, Agriculture, Industries, Commerce, Statistics and Planning as members.
Dr Ashfaq said that the ECC noted a nominal increase of 0.04 percent in SPI; decline in prices of 13 items and increase in the prices of 14 items, and that prices of essential commodities in Pakistan were less than the neighbouring countries.
He said that to bring down the prices of sugar in the open market, the government was encouraging import of sugar by private sector and has decided to take action against hoarders and sugar mills involved in profiteering.
The adviser said that as a result of the government's steps sugar prices have come down from Rs 42-43 to Rs 38 per kilogram in the open market, whereas Utility Stores were selling it at Rs 27.50 per kg.
He added that prices of sugar at international level have also come down from $450 per tonne to $434 per tonne.
He said that number of USC outlets have been increased from 450 to 1100 and the monthly sugar quota for the USC has been raised from 11000 tonnes to 32,000 tonnes.
Dr Ashfaq said that the government has also deputed personnel of CBR at the sugar mills to monitor and evaluate the stock, sale and prices position in factories.
During the meeting, Shaukat Aziz directed ministry of food, agriculture and livestock (Minfal) to take steps to increase the per acre yield of sugarcane.
The meeting was also informed that this year's wheat crop was expected to surpass the 22 million tonnes set target, which is more than sufficient to meet the country's requirements for FY 2006-07.
In a brief interview with media, Prime Minister Shaukat Aziz said that short and long-term strategies had been formulated to stabilise prices of essential commodities.
The Prime Minister reiterated resolve to providing essential commodities to the people at reasonable rates.
APP ADDS: The ECC noted increase in the prices of tomato due to off-season cycle of the commodity. Dr Ashfaq said to stabilise tomato prices, the Prime Minister directed the Minfal to produce "Tomato paste" by also involving the private sector under the "Agriculture Business Development Programme" of the ministry.
Dr Ashfaq said that as on February 27, there was a stock of 1.36 million tonnes of sugar as compared to 0.8 million tonnes of the commodity last year.
Dr Ashfaq said the ECC was also informed there was no shortage of wheat in the country and as on February 28 there was a stock of 2.8 million tonnes of wheat in the country.
He added the wheat stock in the same period last year was only one million tonnes, adding USC is also selling flour at 11.50 per kg.
Dr Ashfaq said the prices of flour in Islamabad is 13.20 per kg while the commodity is available for Rs 17.70, Rs 21.39, Rs 36 per kg in Dhaka, New Delhi, and Colombo respectively.
Dr Ashfaq said the ECC was also informed that poverty rate had come down from 32.1 percent to 25.4 percent.
He attributed the reduction to strong economic growth, achieved by the government in the past four years and the accelerated economic activities that created employment opportunities for the people.
He said per capita income has also increased to $736 and expected to increase to $825 during the current financial year. Dr Ashfaq said the ECC also decided to provide 11 million cubic feet per day natural gas explored from Qadirpur gas field to the mills producing fertiliser on pre-qualification basis.
For the provision of the natural gas to the fertiliser factories, the Prime Minister directed to constitute a committee with Adviser to the Prime Minister on Finance and Ministers for Industries and Petroleum as the members of the committee.
The ECC also approved the establishment of a dry port at Mirpur in Azad Kashmir and the CBR would collect the revenues at par with the rest of the country. However, it was decided that the AJK government would introduce legislation.
As soon as the law is implemented in the AJK, the CBR would start collections at Mirpur dry port.
For the national trade clearance, the ECC decided to shift Peshawar dry port to Azakhel while for the Afghan Transit Trade the clearance would be carried out at Jamrud.