ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has formed an eight-member committee to evaluate the proposal for an increase in the minimum support price (MPS) of wheat for the 2020-21 crops.
Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh chaired the meeting of the ECC at the Cabinet Division on Monday.
The ECC held a detailed discussion on the MSP of wheat, wherein the Ministry of National Food Security & Research (MNFS&R) briefed the meeting on different estimates gathered from Punjab, Khyber Pakhtunkhwa, Balochistan and the federal capital. During the discussion, it also came to the fore that there was a need to increase the MSP to support farmers and to grow enough quantities in the next sowing season.
The forum further discussed the need to rationalize the prices of inputs and make them more affordable to the farmers, as it would support rural economy through various measures and increase the supply of wheat in the market which will bring flour prices down.
The forum stressed a better system to gather data regarding the agriculture sector.
The ECC on the occasion formed a committee, comprising MNFS&R Minister Syed Fakhar Imam, Adviser to PM on Finance Dr Hafeez Shaikh, Special Assistant to PM on Austerity & Institutional Reforms Dr Ishrat Hussain, SAPM on Revenue Dr Waqar Masood, SAPM on Power Nadeem Baber, Adviser to PM on Commerce Abdul Razzaq Dawood, Planning Minister Asad Umar and Ecocnomic Affairs Minister Khusro Bakhtiar as members, to thoroughly evaluate the proposal for the increase in the MPS of wheat for the 2020-21 crops.
The committee shall also prepare a proposal on subsidy on fertilizers, mainly DAP, which may be offered as a part of the package for the farmers so that their input cost is reasonable/reduced.
It was also decided that the provinces should increase the wheat releases to stabilize/reduce the price of flour in the market. Local governments will also be directed to specially monitor the prices of wheat and flour in the markets so that its prices may not be allowed to escalate for the common man.
The committee shall present its proposal in the next meeting of ECC.
Meanwhile, the committee approved in-principle the procedure for registration under the concessionary regime of electricity, RLNG and gas under the export-oriented sectors (erstwhile zero-rated sectors) with instructions to ensure better targeting of the recipients of this subsidy.
The ECC also decided that the previous list of manufacturers or exporters declared zero-rated by FBR (under condition (xii) of the SRO 1125) may be adopted in export-oriented sectors. FBR may register new manufacturers or exporters of five export-oriented sectors (erstwhile five zero rated sectors), in accordance with past precedents of STGO-117, under Commerce Division’s O.M No.1 (18)/2019 in manner specified by FBR.
FBR, Petroleum Division and Power Division may formulate periodic rechecking/monitoring/withdrawal strategy for previous and newly registered units along with procedure to penalize in case of misrepresentation and misuse.
