ISLAMABAD: The federal cabinet’s Economic Coordination Committee (ECC) on Thursday was unable to reach a decision regarding the imposition of a ban on the export of vegetables and deferred the plan for the next three months.
According to sources, the Ministry of Commerce tabled a summary titled ‘Ban on Export of Tomatoes and Onions’ during a meeting held under the chair of Federal Minister for Finance and Revenue Shaukat Tarin. Federal Minister for Planning Asad Umar, Federal Minister for Industries and Production Khusro Bakhtiar, Minister of State for Information Farrukh Habib, Advisor to PM on Commerce Abdul Razak Dawood, SBP Governor Dr Reza Baqir, secretary Power Division, secretary M/o NFS&R, secretary Commerce, FBR chairman, SECP chairman, USC MD and other senior officers participated in the meeting.
After a detailed discussion, the ECC constituted a sub-committee headed by the finance minister to consider monthly projections regarding the export of perishable commodities on the basis of estimated production, consumption and surplus to be presented by the Commerce Ministry. The power to take a final decision in this regard now rests with the sub-committee, which will be notified soon.
As per details, the National Price Monitoring Committee (NPMC) meeting held on September 22 had decided that the Commerce Ministry, with the consultation of MNFS&R will impose a ban on export of tomatoes and onions for the next three months.
It is relevant to note that the data for the current fiscal year from July to September (1QFY22) has shown that export of onions increased by 144 per cent to $21.55 million from $8.82 million during the corresponding period of last year (1QFY21).
Similarly, the export of tomatoes during 1QFY22 stood at $24,880 compared to no exports during the corresponding period of the last fiscal.
Sources said that MNFS&R has informed ECC that the imposition of a ban on onions and tomatoes may hamper exports in future with Pakistan losing high value markets due to non-consistent supply orders to international importers.
At the same time, unrest among the farming community may prevail, resulting in farmers not willing to grow the vegetables next year.
However, in order to maintain a smooth supply and prices in the domestic market and as directed by NPMC, the MNFS&R has recommended imposing a short term ban on the export of onions and tomatoes from October 10 up to January 10, 2022.
Sources said that the Ministry of Commerce has backed the observation that a ban on export of these items is likely to adversely affect the country’s image as a reliable supplier.
Furthermore, the Ministry of National Food Security and Research presented a summary to update the forum about cotton seed prices during the months of August and September. It said that domestic prices remain above the threshold set, barring a couple of days due to rains. The meeting expressed satisfaction that farmers are getting their due prices.
MNFS&R tabled a summary regarding allocation release of 280,000MT of wheat to the Utility Stores Cooperation (USC) till December. A quantity of 90,000MT has already been provided as an interim arrangement whereas the remaining 190,000MT will be provided from PASSCO’s stocks, local or imported, as per stock availability. The ECC approved the allocation of remaining 190,000MT to USC to ensure smooth supply of wheat through USCs across the country.
On another summary moved by the MNFS&R, the ECC recommended the allocation of total quantity of 300,000MT of wheat to the AJ&K government out of PASSCO stock during the current financial year. This includes 140,000MT of wheat which has already been released to AJ&K as an interim arrangement.
The ECC directed the referring division to provide wheat to AJ&K with a combination of indigenous and imported wheat.
Moreover, the Finance Ministry also tabled a summary regarding incentives to overseas Pakistani remitters under the National Remittance Loyalty Program (NRLP), which has been branded as the Sohni Dharti Remittance Programme. Remitters will be awarded points against remittances sent by them to Pakistan through legal channels. After due deliberations, the ECC recommended that the option of cash redemption may only be offered to those who return to Pakistan permanently. However, they shall qualify to avail services such as PIA tickets, mobile phone duty payment etc. against the redemption of accumulated points awarded under NRLP.
The ECC also approved a Technical Supplementary Grant (TSG) amounting to Rs6.4 billion in favour of Cabinet Division for Special Technology Zones Authority (STZA) during the current fiscal (FY22).
