ISLAMABAD: The Economic Coordination Committee (ECC) on Friday allowed export of two million tons of wheat in addition to approve procurement and export of 0.6 million tons of sugar to reduce surplus stocks.
Prime Minister Shahid Khaqan Abbasi, heading ECC meeting at the Prime Minister’s Office, approved a proposal of ministry of national food security and research to allow the governments of Punjab and Sindh to export 1.5 and 0.5 million tons of wheat, including wheat products.
“The export of wheat and wheat products would be completed before the 30th June 2018,” a government statement said.
Surplus wheat stocks piled up to 4.5 million tons, while government is expecting a rise in crop production during the winter season of 2017/18. It set wheat output target at 26.46 million tons for the current season, a little up from the production of 26.38 million tons a year earlier.
The ECC also approved a proposal for the procurement of 0.3 million metric tons (MMT) of sugar from the surplus stock of the sugar mills, “through tendering process and to export the same through international tendering process”.
“The step would enable the mills to procure sugarcane from the growers at the prescribed rate and to ensure timely payments to the farmers,” the statement said.
Late last month, ECC green-signaled export of 1.5 MMT of sugar to reduce surplus of sweetener.
Pakistan Sugar Mills Association is expecting the highest ever sugar production of seven million tons in the crushing year of 2016/17, and projected the output at eight million tons for the next crushing year.
The ECC also approved a proposal for grant of exemption from tax-duties for import of construction material for infrastructure projects of National Highway Authority under the China-Pakistan Economic Corridor project.
“This exemption would be applicable only to the construction of Sukkur-Multan section of Peshawar to Karachi Motorway project,” the statement said.
The committee approved an exemption from relending policy of government for funds release to State Bank of Pakistan for implementation of financial inclusion and infrastructure project.
A proposal for reduction of certain regulatory duties on certain items as proposed by the Federal Board of Revenue was also approved.
The ECC also approved the proposal of exemption from applicability of section 5A of the Income Tax Ordinance 2001 to companies with special agreement with the government.
The committee also permitted Water and Power and Development Authority to raise financing from banks against the sovereign guarantee of the government for the purpose of clearance of arrears of net hydel profits of the governments of Khyber Pakhtunkhwa and Punjab.
“Proposal for exemption from provision of section 113 of the Income Tax Ordinance 2001 for public sector universities was also approved by the ECC,” the statement added.