KARACHI: The Sindh cabinet has approved fixation of the issue price of wheat at Rs3,687.50 per 100 kg bag so that ex-mill flour price could be brought down by Rs9.13 per kg.
The Sindh Chief Minister Syed Murad Ali Shah presided over the cabinet meeting here at the CM House on Tuesday. The meeting was attended by all provincial ministers, advisers, Chief Secretary Mumtaz Shah, Advocate General Salman Talibddin, P&D Chairman M Waseem and concerned secretaries.
During a presentation to the cabinet, secretary food told that a stock of 1.262 MMT wheat was available in six divisions of the province. He added that the flour prices were stable in the market which has been recorded at Rs57 per kg.
The chief minister said the flour price has to be brought down because wheat was available in the market.
On the recommendation of Food Minister Hari Ram, the cabinet approved releasing of wheat to flour mills from Oct 16.
With the new issue price of wheat, the new price of flour would come to Rs47.87 per kg.
The country is facing serious wheat crisis due to lower output this year and despite import of commodity, the price of wheat flour (Chaki Aata) has been surged to historical level of Rs 75 per kilogram.
Market sources said the Sindh government decision will help to improve the supply of wheat in Sindh and the prices of wheat flour and other products are likely to reduce.
Prime Minister Imran Khan has also expressed concern on higher inflation and asked the concern authorities for appropriate actions to control the soaring prices of essential items.
The chief minister directed the food department to ensure reduction of flour price at ex-mill level and keep informing the minister so that they could control at retail level. The chief minister directed the chief secretary to mobilise the district administration and pass on the benefit of reduction of flor price by Rs9.13 per kg to the people of the province.
Islands Issue: At the outset of the cabinet meeting the issue of Island came under discussion. The cabinet members, once again, called upon the federal government to withdraw controversial ordinance promulgated to establish Islands authority. The cabinet members said that no talks on the island would be held with the federal government until and unless the controversial ordinance was withdrawn.
The cabinet termed the ordinance an attempt to grab provincial government lands by trampling the rights of local fishermen. "We will not accept the ordinance as it is against the provincial autonomy and against the interest of local people," the cabinet members said unanimously.
Infrastructure Cess: Minister Energy Imtiaz Shaikh said that the Excise & Taxation Department had granted exemption from Infrastructure Cess on imports of coal mining and coal-based electricity generation companies in Thar Coal Filed. He added that it was time bound and expired on June 30, 2020.
It was also pointed out that the Economic Coordination Committee had also announced an Incentive package to accelerate development in Thar. The ECC incentives include zero percent custom duty, exemption from special excise duty, federal excise duty, workers welfare and participation funds, withholding tax on procurement of goods and services and other levies for 30 years.
The cabinet was informed that SECM was producing 3.8 mtpa coal in phase-I and catering power generation of 660 MW. Financial close for its phase-II has been achieved to double the production, 7.8mtpa. It would cater further power generation of two 330 MW power plants.
A Chinese company SSRL has obtained financial close for development of a 7.8 mtpa mine at Block-1 of Thar Coalfield. This would cater to power generation of 1320 MW. Similarly, other local companies would generate 660 MW electricity.
Keeping in view the development potential in Thar Coalfield, the cabinet approved exemption of Infrastructure Development Cess (IDC) on imports for a period of 30 years as per ECC 30-year incentive package.
The provincial cabinet also approved enhancement of Sindh Sales Tax on Services of transportation or carriage of petroleum oils through oil tankers from 13 percent to 15 percent to maintain uniformity with other provinces. It would not create any burden on the consumers and would not develop any impact on the petroleum prices.
The cabinet approved a draft bill of "The IBA Sukkur University Sukkur (Amendment) Act, 2020 just to maintain uniformity in the organization, management and control of public sector universities and degree awarding institutes by amending certain laws. The approved amendments were referred to the assembly.
The cabinet approved the appointment of Abdul Rauf Chandio as Chief Executive Officer 9CEO) of the Sindh Modaraba management Ltd for a period of three years being the first priority candidate as suggested by the Board of Directors of the company.
Copyright Business Recorder, 2020