By Staff Reporter
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Saturday green-signalled the import of 3 million tonnes of wheat and 200,000 tonnes of Chinese urea to build strategic stocks to cushion any supply shocks.
The ECC met here under the chair of Federal Minister for Finance and Revenue Miftah Ismail at the Finance Division.
Pakistan is importing wheat to maintain a buffer stock to ensure the food security of the country in case of any deficit.
Of the said total, 2 million tonnes of wheat will be imported through government-to-government (G2G) basis and one million tonnes via open tendering, while urea will be sourced from China on deferred payment under G2G arrangement.
The government is moving towards wheat imports to avoid a shortfall at a time when grain prices are escalating in the international market.
The wheat production currently stands at 26.3 million tonnes and the country is short of 5 million tonnes to meet domestic requirements as well as build strategic reserves to avoid any local market volatility in future.
The Ministry of National Food Security and Research (MNFS&R) submitted a summary on modalities framed for import of 3.00 million tonnes of wheat in the light of the decisions of the ECC on 09-05-2022 and Federal Cabinet on 10-05-2022.
The ECC, after discussion, allowed import. PASSCO will be the recipient agency for the imported wheat.
The ECC further directed the MNFS&R to get the requirements of wheat by the provincial governments.
On another summary of the MNFS&R for Ramzan Package subsidy on wheat flour – bridge financing facility for Punjab Food Department – the ECC decided that in case subsidy was not approved by the Punjab Cabinet, the shortfall would be bridged by the Islamabad but Punjab would ensure that provincial cabinet approved the package as soon as its meeting is convened.
The ECC also approved a summary submitted by Pakistan Atomic Energy Commission for granting extension in the construction period of K-2 from November 30, 2020 to May 21, 2021 and K-3 from September 30, 2021 to April 18, 2022 for ensuring disbursement of pending loan of $383 million (approx) before expiry of loan availability on 03-06-2022 from Exim Bank, China to the contractor, who has already completed the project.
The Ministry of Industries and Production submitted a summary on the continuation of the PM’s relief package – 2020 for the months of May and June, 2022 through USC (Utility Stores Corporation).
The ECC after deliberation maintained the existing subsidy for two weeks on essential commodities (wheat, flour, sugar, rice, and pulses), and Rs100/kg subsidy on ghee at USC. The Finance Division will also release the outstanding amount on account of subsidy under PM Relief Package – 2020 approved by the ECC for the previous months.
The Ministry of Industries and Production submitted another summary on the Chinese offer for import of Urea by TCP on G2G basis. ECC after deliberation allowed TCP to import 200,000 MT Granular Urea from China on G2G basis on deferred payment basis within 90 days.
The Ministry of Economic Affairs submitted a summary on exemption from all kinds of taxes and duties on the complete portfolio being executed by the Saudi Fund for Development (SFD).
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