By Staff Reporter
ISLAMABAD: The Economic Coordination Committee of the cabinet said on Monday that price increases for essential commodities have slowed after a temporary acceleration, as the government’s top economic panel also approved fresh funding to help clear remaining liabilities at the national airline days before its full handover to private owners.
The ECC, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division in Islamabad, received a briefing from the chief economist of the Ministry of Planning, Development and Special Initiatives on recent trends in key economic indicators, with a focus on price movements and broader inflation dynamics, according to a finance ministry statement.
Recent data point to gradual stabilization in prices, backed by coordinated action across federal, provincial and district levels, the committee was told. Institutional mechanisms, particularly the National Price Monitoring Committee, have improved market oversight and allowed for quicker interventions. Several key items, including tomatoes, onions, wheat flour, garlic and liquefied petroleum gas, have seen outright price reductions, while sugar has also trended lower. Increases in eggs, chicken, pulses, cooking oil, bread and milk have been only marginal, the ECC was informed. Overall, prices of major food and household items are converging toward more stable levels, with some returning close to pre-volatility benchmarks. The committee stressed the need to sustain these gains and maintain price stability in the months ahead, in line with the government’s focus on protecting consumers while preserving macroeconomic balance.
Separately, the ECC approved 5.985 billion rupees for PIA Holding Company Ltd. to help settle liabilities of Pakistan International Airlines Corp., the ministry said. Of that amount, funding was cleared for reimbursement of medical and pension payments as well as salary disbursements. The panel directed that the portion related to payments owed to the National Insurance Company Ltd. be taken up with the relevant revenue authority for adjustment, consistent with auditors’ recommendations.
The allocation comes as Pakistan finalizes the transfer of its chronically loss-making flag carrier to private management under the terms of its $7 billion International Monetary Fund program. The Arif Habib-led consortium, which acquired a 75% stake for 135 billion rupees late last year, is scheduled to assume full operational control by the end of April. The group includes Fatima Fertilizer Co., Fauji Fertilizer Co., AKD Group and Lake City Holdings. The government has already shifted a large portion of PIA’s debt into the holding structure to make the airline more attractive to buyers. Previous privatization attempts had repeatedly stalled over concerns about liabilities, governance and operational inefficiencies.
The ECC also cleared technical supplementary grants totaling several hundred million rupees across multiple ministries and divisions. These included 100 million rupees for the Cannabis Control and Regulatory Authority under the Cabinet Division to fund renovation and operationalization of its facilities, 311 million rupees for the government of Balochistan under the Finance Division to support a Prime Minister-approved incentive package for Pakistan Administrative Service and Police Service of Pakistan officers posted in the province, 372 million rupees for the National Accountability Bureau under the Ministry of Law and Justice to advance digital transformation and implementation of artificial-intelligence-based systems, and 30 million rupees for the Ministry of Inter-Provincial Coordination to provide financial rewards to the Pakistan national hockey team for qualifying for the FIH Hockey World Cup after an eight-year absence, as approved by the Prime Minister.
In other business, the committee approved amendments to the Import Policy Order 2022 proposed by the Commerce Division. The changes introduce a prohibitory clause on the import of goods produced through forced labor, fulfilling Pakistan’s commitments under International Labour Organization conventions. The ECC also signed off on amendments to the Import-Cum-Export Scheme of the 2022 Import Policy Order and the Export Facilitation Scheme 2021. These will permit the temporary import of used vehicles and auto parts for repair, refurbishment and subsequent re-export under a one-year pilot project. The panel directed that the scheme be reviewed after 12 months.
On a proposal from the National Food Security and Research Division, the committee approved the disposal of existing inventory at the Gwadar Donkey Slaughter House in accordance with applicable regulations and export protocols. It referred a separate summary from the Power Division concerning a Public Service Obligation agreement with the ex-WAPDA distribution companies to the Cabinet Committee on State-Owned Enterprises for further consideration.
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