The Economic Co-ordination Committee (ECC) of the Cabinet has approved a subsidy of Rs 6 billion for the export of 1.2 million tons of surplus wheat available with Punjab and Sindh governments. A participant of the meeting, who requested anonymity, said that Ministry of Food Security and Research had proposed the export of 3 million tons but the ECC meeting chaired by Finance Minister Ishaq Dar decided to allow export of 1.2 million tons. 

He further stated that the meeting did not allow export of proposed quantity in case of future domestic needs. Punjab will export 800,000 tons while Sindh has been allowed to export 400,000 tons of wheat at a subsidy of $55 per metric ton and $45 metric tons respectively. Taking notice of unhindered import of wheat by-products, the ECC also issued instructions for an immediate ban on their import. Sources said the meeting has deferred rationalisation of duty on pure terephthalic acid and drug pricing policy. 

The ECC considered a proposal moved by the Ministry of States and Frontier Regions (SAFRON) and approved the provision of 30,000 tons of wheat to the United Nations World Food Program for distribution among Temporarily Displaced Persons (TDPs) of FATA and Khyber Paktunkhwa, catering for the period up to March 2015. The ECC also observed that in case of further requirements, SAFRON could revert to the forum with a fresh proposal. 

The meeting also considered and approved Ministry of Water and Power's proposal on policy to attract private sector investment in transmission line projects with the inclusion of an upfront tariff as an option. NEPRA is empowered to grant license authorising the licensee to engage in the construction, ownership, maintenance and operation or specified transmission facilities on specified terms and conditions in the public interest. 

The ECC also accorded approval to the extension of Gas Sale Agreement (GSA) between OGDCL and Fauji Kabirwala Power Company Limited (FKPCL) for provision of 20 mmcfd of gas at the earliest possible but not later than 1st February till the time LNG is made available to the company for power generation. At its maximum generation capacity utilisation the plant will generate157 MW of electricity. 

The ECC approved issuance of policy directives to NEPRA to build in costs incurred by the power sector into the tariff without affecting the end-consumer. The ECC also approved the re-lending of a buyer credit loan to PAEC as per actual terms and conditions available to the Government of Pakistan. Based on the above approval, the revised rate comes to 9% comprising actual cost of loan and the exchange rate risk. 

Source: brecorder.com

• EU to ban products made with forced labour - a progressive tool against modern slavery
• VN needs drastic reforms to create firm ground for economic growth: experts
• Enterprises want clearer regulations on seafood production
• Foreign businesses increasingly seek export sources in Vietnam
• Sailing through storms: The fallout of Red Sea disruptions for global trade and inflation