The Economic Coordination Committee of the Cabinet (ECC) met under the chairmanship of Federal Minister for Finance, Mr. Shaukat Tarin at the PM Secretariat here today.
The ECC approved the strategy designed for ensuring regular supply of major as well as minor crops in order to sustain food security. The main elements of the strategy include:
i. Timely announcement of support price for wheat and intervention/indicative price for major and minor crops.
ii. Ensuring timely availability of farm inputs at affordable prices with special emphasis on water conservation and its judicious use.
iii. Setting area and production targets of major and minor crops in consultation with stakeholders.
iv. Enhancing farmer’s access to modern crop varieties and new technologies and promoting adoption of good agricultural practices for production of major and minor crops.
v. Improving marketing systems for various agricultural commodities.
vi. In case of shortage of essential food commodities, their supply will be ensured by the public and private sectors through imports and maintenance of buffer stocks.
While discussing the subject of disposal of super basmati rice 2008-09 crop, the
ECC gave approval to the following measures for disposal of rice lying in PASSCO godowns:
i. Export of rice to Middle East, Iran, Europe or any other market on government to government basis.
ii. Sales/exports to be done through qualified agents/brokers.
iii. US $ 900/ton would be the minimum base price for super basmati within 5% limit of broken rice.
The ECC also approved the Standardized Security Agreements for hydro power projects under the Policy for Power Generation 2002. The ECC authorized the Board of PPIB to approve any project specific amendment in the Standardized Security Hydropower Agreements required during negotiations provided GOP obligations or liabilities are not increased.
The ECC approved the recommendations of the Committee on Revival of the Risalpur Export Processing Zone which include:
i. Allowing export of the manufactured goods from the REPZ as trading items to Afghanistan via land route.
ii. Revision of lease rates/annual ground rent will be decided by Export Processing Zone Authority, Board of Directors.
iii. 30% Export of manufactured goods to tariff area will be allowed.
In view of the acute financial crunch experienced by the Pakistan Steel Mills, the ECC approved the following Bail Out Package for the PSM to meet its requirements for working capital and implementing its business plan:
i. Term loan facility of Rs. 8 billion for 5 years in favour of Pakistan Steel based on Government of Pakistan Guarantee by Consortium of Banks led by the NBP.
ii. Running Finance Facility of Rs.2.00 billion, renewable on yearly basis, in favour of Pakistan Steel Mills based on Government guarantee by Consortium of Banks led by the National Bank of Pakistan.
The meeting was also briefed by Ministry of Industries and Production on progress on implementation of the National Sugar Policy 2009-10. Keeping in view the differential of 10-15% in the market and the Utility Store Corporation (USC) prices, i.e. from Rs. 6-9 per kg, the ECC decided to rationalize the price of sugar to be sold through USC retail outlets by increasing it by Rs.7 per kg i.e. from Rs.38 per kg to Rs.45 per kg.
While considering the issue of revision of re-lending policy of foreign loans/credits, the ECC approved that provinces may avail re-lending of the foreign loans on the same terms and conditions on which loans are signed by the GOP. In this regard the provinces would be allowed to issue their own bonds.
While considering the issue of passing on the German grant/soft loan to PPAF for livelihood support and promotion of small community infrastructure project, the ECC approved relaxation of following terms before signing the Agreement:
i. Passing on of Euro 14,860,399.40 grant to Project Executing Agency (PPAF) as a grant.
ii. Passing on of Euro 16,701,660.86 loan to Project Executing Agency (PPAF) as a grant.
