The Economic Co-ordination Committee (ECC) is to allow import of 2.3 million tons of urea for Rabi season, through Trading Corporation of Pakistan (TCP) after local producers unambiguously conveyed to the government to bridge the shortfall thought import.
The ECC meeting, to be presided over by Finance Minister Hafeez Shaikh, is expected to accord ex post facto approval of gas management plant, according to which every industry will have to face load shedding 2-3 days per week, which will negatively impact on production. The ECC will also review reasons for petrol shortage during floods, and future line of action.
Circular debt will also come under discussion. The country's overall economic situation including RGST, its impact on inflation and on the life of common man will also come under discussion. The Board of Investment (BoI) and State Bank of Pakistan (SBP) will give presentations on home remittances and FDI trends and identify steps to enhance FDI.
Both these presentations are pending for the last one month with the ECC because of shortage of time. However, this time, both these presentations are expected to be considered. State Bank Governor is expected to present overall economic picture of the country and reasons for increase in discount rates by 50 basis points (0.5 percent) to 14 percent aimed at controlling inflation.