ISLAMABAD
The economic coordination committee of the cabinet on Thursday approved the export of 300,000 tonnes of sugar in addition to the already approved limit of 0.425 million tonnes, however, the committee decided not to allow a rebate on the sugar export.
An official source said that the inter-ministerial committee, constituted by the prime minister, had recommended allowing further export of 0.6 million tonnes but after objections from few ministers, the committee decided to allow additional export of 300,000 tonnes. If the need arises, then additional quantity could be exported.
Sugar production in Pakistan reached a record 7 million tonnes this year. It was mainly possible to the decline in prices of cotton and rice as most of the farmers shifted to the cash crop of sugarcane. Pakistan’s annual sugar consumption is estimated at 5 million tonnes per annum leaving an exportable surplus of close to two million tonnes.
An official statement said the ECC meeting was chaired by the Finance Minister Ishaq Dar. The decision was taken keeping in view the recommendations of the inter-ministerial committee, constituted by the prime minister, and the Sugar Advisory Board. The export quota would be approved and monitored by the State Bank of Pakistan (SBP) on first come first serve basis.
The ECC also approved a proposal of the ministry of industries and production to grant exemption from value-added tax as required under a provision of a proposed agreement between Pakistan and Belarus on Industrial, Scientific and Technical Cooperation. Once the agreement is signed, both governments will mutually exempt value-added tax when importing goods supplied on cooperation base, as well as goods supplied under grant-in-aid.
An official source said ECC was briefed that the sugar price in the domestic market according to the Sensitive Price Index was lower than the level of December 15, 2016 when the export of sugar was allowed. The committee was informed that out of the total quantity of 0.425 million tonnes allowed for export during the current crop year, a total of 0.391 million ton sugar quota has, so far, been allocated by State Bank of Pakistan (SBP) and around 0.348 million tonnes has been exported.
The inter-ministerial committee had decided the committee constituted by the prime minister will meet during first week of every month to review the sugar stock and export and price situation; in case of any abnormal increase in the domestic price of sugar, the committee would recommend to the ECC the stoppage of further export; the export quota will be approved and monitored by the SBP on first come first serve basis; and exports will be completed within 60 days of quota allocation by the SPB.
