ISLAMABAD: The Economic Coordination Committee (ECC) granted approval on Thursday for the export of an additional 100,000 metric tons (MT) of sugar, subject to specific conditions. The decision was made during a meeting chaired by Federal Minister for Finance and Revenue, Muhammad Aurangzeb, following a summary presented by the Ministry of Industries & Production.
This approval comes after the ECC’s earlier decisions to allow the export of 40,000 MT of sugar earlier in August and 150,000 MT in June 2024. The ECC emphasized the need for a structured approach to sugar exports, especially considering the procedural delays encountered in previous allocations.
One of the key conditions set by the ECC includes extending the allowable period for sugar export from 45 to 60 days from the date of quota allocation by the respective Cane Commissioner. Additionally, the committee mandated that export proceeds from Afghanistan must be received in advance through banking channels, while proceeds for exports to other destinations via Letter of Credit (LC) are permitted within 60 days of opening the LC.
The ECC also clarified that the retail price of sugar should not be linked to the permission for export, as price control does not fall within the purview of the sugar mills. Furthermore, any penalties related to non-payment of dues to growers will be applied only to non-compliant mills rather than the entire Pakistan Sugar Mills Association (PSMA).
In a move to ensure market stability, the ECC decided to monitor the sugar market on a monthly basis and revisit its decisions as needed. The Sugar Advisory Board (SAB) has been tasked with developing a comprehensive sugar policy within two months to address sectoral challenges and promote sustainable growth.
In addition to the sugar export decision, the ECC also approved several technical supplementary grants, including Rs276.250 million for the Ministry of Interior to support Frontier Corps KP(N) TSG for Project Implementation Letters (PILs), and Rs1.951 billion for security charges related to the Reko Diq Project, payable to Frontier Corps Balochistan (South).
Furthermore, the ECC sanctioned a special allocation of Rs20 billion for Operation Azm-e-Istehkam in the current fiscal year 2024-25. The operation, launched in June 2024 under the National Action Plan (NAP) and spearheaded by Prime Minister Shehbaz Sharif, aims to eradicate terrorism and extremism across the country.
The ECC meeting was attended by key ministers, including the Minister for Industries & Production, Rana Tanveer Hussain, and the Minister for Commerce, Jam Kamal Khan, alongside other senior officials from relevant ministries.
