ISLAMABAD: The federal government has decided to procure cotton from farmers at a price of Rs4,000 per 40kg in order to save the crop, sources revealed on Tuesday.
The Economic Coordination Committee (ECC) of the cabinet will discuss the intervention price for cotton crop 2020-21 tomorrow (Wednesday), before giving a final approval in this regard.
This would be first time in history that the government would procure cotton crop.
Sources said that the government was likely to give a 20 million cotton procurement target to the Trading Corporation of Pakistan (TCP).
Meanwhile, the Ministry of National Food, Security and Research would brief the ECC regarding wheat procurement by the public sector in 2019-20.
As against the target of 8.2 million tonnes for FY20, the Centre and provinces have so far procured 3.4 million tonnes of wheat, besides issuing 5.7 million tonnes of bardana.
KP and Balochistan have not procured any wheat so far, while Sindh has procured 0.706 million tonnes, Punjab 2.009 million tonnes and PASSCO 0.704 million tonnes.
The ECC would also discuss the Ministry of Defence’s agenda with regard to the allocation of funds for the construction of a ‘special education school’ as well as provision of funds for ‘major uplift of a telecom monitoring project’.
Moreover, the committee would take up the issue of a technical supplementary grant (TSG) of Rs1.04 million as an assistance package for the family of late Raees Anwar Abbasi, ex-senior private secretary.
It may also approve a TSG worth Rs12 million for Poverty Alleviation and Social Safety Division as well as additional funds of Rs306 million for payment of dues on account of PM’s assistance package.
On the request of the interior ministry, the ECC is likely to allow additional budget estimates for MCI for the 2nd half of the financial year 2019-20.
Incentive package for the national Electric Vehicle (EV) Policy, impact of coronavirus on Pakistan’s economy, and facilitation to port users/traders would also be deliberated on the occasion.
In addition, the committee would take up issues regarding the vacation of land for construction of Eastbay Expressway of Gwadar Port currently in possession of Pakistan Coast Guard; criteria for disbursement of Rs100 billion and Rs200 billion syndicated term finance facility and Islamic Sukuk Facility, respectively, in the light of power sector audit report; conversion of Power Holding Company’s debt into public debt; and issuance of new sovereign guarantee by the finance ministry in respect of fresh syndicated term finance facility for Rs41 billion through Power Holding Limited.