The Economic Coordination Committee (ECC) of the cabinet is scheduled to meet on Thursday (today) and is likely to approve 6 percent Research and Development (R&D) support for leather garments and raise the support to textile garments sector from 3 percent to 6 percent. Prime Minister Shaukat Aziz will be in the chair.
Official sources told Business Recorder that the commerce ministry submitted both the proposals to help leather and textile garment sectors' export. The sources said that proposal to raise R&D support to textile garment was on the agenda of the ECC in its previous meeting but it was deferred till the next meeting.
Pakistan Bedwear Exporters Association (PBEA) has also demanded increase in R&D support from 5 percent to 9 percent, but Commerce Ministry did not take up their case with the ECC. The ECC would also review the outcome of the Pakistan-Sri Lanka Free Trade Agreement (PSFTA) which is the first ever such pact Islamabad signed with any other country.
The sources said, ECC would approve allocation of additional gas to power sector placing it at the disposal of Private Power Infrastructure Board (PPIB) for allocating to new IPPs. According to sources, the ECC may consider a proposal of PPIB, in which it has been suggested that extension should be given in the Letter of Intents (LoIs) to the power companies till December 2010.Three of the power companies have already been granted extension till December 2008.
PPIB is of the view that as it completes 'project processing' international scenarios change and the power sector firms face difficulties to purchase equipment as per their feasibility.
This implies that PPIB has accepted that it was unable to complete documentation in time that has been a serious concern of the private sector investors. They said that Central Board of Revenue's (CBR) proposal regarding exemption from payment of customs duty and taxes on import of 250.32 MT of CGI sheets from India by M/s Himalayan Rural Support Programme, Rawalpindi for free distribution in the earthquake hit areas.
The sources further said that the ECC would also discuss the price escalation of essential items especially edible oil, ghee and pulses and also will compare prices of these items with countries like, India, Bangladesh, Sri Lanka and Afghanistan.