ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has allowed export of 500,000 tonnes of sugar and imposed 20 per cent regulatory duty on its import to facilitate sugar industrialists, who are facing financial crisis.
The committee meeting, presided over by Finance Minister Ishaq Dar, allowed export of surplus sugar recommended by the Ministry of Industries and Production with the condition that exports be made against irrevocable letter of credit or a firm contract with 15% non-refundable advance payment. The other conditions include, shipments be made within 45 days of the registration of contract; non-refundable advance payment shall be forfeited in favour of GoP in case of non-performance and the quota as allocated must be exported by March 31, 2015.
The ECC also allowed the price of gas from the Mari field to be gradually increased by almost three-fold in five years and formally approved an increase in wheat support price of Rs100 per 40kg.
It is pertinent to mention here that a delegation of Pakistan Sugar Mills Association (PSMA) recently met the Finance Minister and demanded permission for export and 25pc duty on import to discourage price reduction. The minister had agreed to the demands and directed the ministries of commerce and industries to move a formal case.
Meanwhile, the Committee also increased the wheat support price from Rs1,200 to Rs1,300 per 40kg as unilaterally approved by the finance minister two weeks ago. It also okayed dismantling of the gas purchase agreement of the Mari Gas Company that would allow an increase in price from about 80 cents per mbtu to $2.17 by 2019 in phases.
