ISLAMABAD: A meeting of the Economic Coordination Committee (ECC) of the Cabinet has approved import of 200,000 MT of sugar and 400,000 MT of wheat for maintaining strategic reserves and price stability in the market.
The meeting chaired by the finance minister, on Wednesday, approved a request for a technical supplementary grant (TSG) by the National Disaster Management Authority (NDMA) for extending humanitarian assistance to Syria in the form of edible items.
The ECC allowed procurement of edible items through the MOFA (Pakistan Mission in Syria) rice and wheat flour (200 tons each) amounting to approximately Rs44.24 million.
The ECC approved a summary of Ministry of National Food Security and Research for exemption of all applicable duties/taxes on the import of 12 drones donated by the Ministry of Agriculture and Rural Affairs (MARA), China for controlling desert locust in Pakistan.
The ECC approved the summary tabled by the Ministry of Industries and Production for import of 200,000 MT of sugar for maintaining strategic reserves.
The secretary, Ministry of Industries and Production, briefed the committee about previous tenders floated for the purchase of sugar in the international market.
Govt decides to import more sugar
He also apprised the meeting about cancellation of previous tenders due to volatility in the prices of commodities in the international market, particularly due to ongoing Covid-19 pandemic. He further apprised the meeting that rising transportation cost and petroleum prices have contributed significantly to international price hike in food commodities.
The finance minister, as a chairman of the ECC, took notice of the price fluctuations in the international market of commodities, and directed to constitute a sub-committee comprising secretary Ministry of Industries and Production, Secretary Commerce, Secretary Finance Division, and Secretary Law Division to hold a consultative session and work out modalities for placing tenders in the international market in a timely manner to get the most affordable price for importing food items to save precious foreign exchange reserves of the country. He also directed to present recommendations for improving the overall estimation process by provinces through making forecasts on a scientific basis for commodities where price risk is involved.
Proper estimates should be presented for import of particular food items to fulfill all codal formalities in a timely manner, he stressed.
The ECC approved the import of 200,000 MT of sugar with immediate effect through the TCP and directed to work out arrangements for the remaining 300,000 MT of sugar through Government to Government mode of procurement at the earliest to build up strategic reserves and ensure smooth supply of sugar across the country before the arrival of the fresh crop. Similarly, the ECC also approved the corresponding financial arrangement for the import of 200,000 MT of sugar during the meeting.
Sugar imported by TCP: second vessel arrives
On the recommendations of the Ministry of National Food Security and Research (NFS&R), the ECC accorded approval to the decision to import 400,000 MT of wheat and directed to explore and expedite the option for importing the remaining amount of wheat through a Government-to-Government arrangement. The ECC emphasised the importance of building strategic reserves in the wake of evolving situation in Afghanistan, which may affect the prices in the domestic market.
The ECC considered and approved a Technical Supplementary Grant amounting to approximately Rs24,555 million (US $150 million) to the NDMA for procurement of Covid-19 vaccines (transportation and handling charges inclusive) in order to meet the target of 85 million population to be vaccinated by the end of year 2021. Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Railways Azam Khan Swati, Federal Minister for National Food Security and Research Syed Fakhar Imam, federal secretaries, Governor State Bank of Pakistan Dr Reza Baqir, Chairman SECP Aamir Khan, and other senior officers participated in the meeting.
Copyright Business Recorder, 2021