ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet on Wednesday gave approval to import 200,000 metric tonnes of sugar as well as 400,000 MT of wheat, stressing the importance of building strategic reserves in wake of the evolving situation in Afghanistan which may affect prices in the domestic market.
The meeting which was held under the chair of Federal Minister for Finance and Revenue Shaukat Tarin also approved the corresponding financial arrangement for the import.
The meeting approved the summary tabled by the M/o Industries and Production for import of 200,000MT of sugar for maintaining strategic reserves. Secretary, M/o Industries and Production briefed the committee about previous tenders floated for the purchase of sugar in the international market.
He also apprised about cancellation of previous tenders due to volatility in the prices of commodities in the international market particularly due to ongoing Covid-19 pandemic.
He further apprised that rising transportation cost and petroleum prices have contributed significantly into international price hike in food commodities.
The ECC approved the import of sugar with immediate effect through TCP and directed to workout arrangements for another 300,000MT through government to government mode of procurement at the earliest possible to build strategic reserves and ensure smooth supply of sugar across the country before the arrival of the fresh crop.
On the recommendation of the Ministry of National Food Security & Research (NFS&R), the meeting also accorded approval to importing 400,000MT of wheat and directed to explore and expedite the option for importing the remaining amount of wheat through government to government arrangement.
In his remarks, the finance minister took notice of price fluctuations in international market of commodities and directed to constitute a sub-committee for holding a consultative session and work out modalities for placing tenders in international market in a timely manner to get a most affordable price for importing food items to save precious foreign exchange reserves of the country.
He also directed to present recommendations for improving the overall estimation process by provinces through forecasting on a scientific basis for commodities where price risk is involved. “Proper estimates should be presented for import of particular food items to fulfil all codal formalities in a timely manner,” he stressed.
Meanwhile, the ECC approved a TSG amounting to Rs24,555 million to NDMA for the procurement of vaccine for Covid-19 including transportation and handling charges in order to meet the target of 85 million population to be vaccinated by the end of year.
Another TSG was approved in favour of M/o National Health Services, Regulations and Coordination amounting to Rs2376.266 million for the Expanded Programme on Immunisation (EPI) for FY22 as EPI is a high-priority initiative of the government which aims to immunise more than seven million children under 1-year of age against ten vaccine preventable diseases (VPD).
The ECC alos considered and approved a request for a TSG by the NDMA for extending humanitarian assistance to Syria and allowed procurement of edible items i.e. 200 tonnes each of rice and flour amounting to approx Rs44.24 million through MOFA.
Moreover, the committee approved the summary for exemption of all applicable taxes on the import of 12 drones donated by the Ministry of Agriculture and Rural Affairs (MARA), China for controlling desert locust in Pakistan.
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