ECC fixes cotton intervention price at Rs8,500 per 40kg

ISLAMABAD: The Economic Coordination Committee (ECC) fixed a cotton intervention price at Rs8,500 per 40 kg for current sowing in a bid to revive cotton production and bring stability to the domestic market.

Besides, the ECC allowed a sovereign guarantee in favour of SNGPL for commercial borrowing of Rs50 billion on an immediate basis to continue the LNG supply chain.

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Tuesday.

According to an official statement issued by the Ministry of Finance, the Ministry of Energy (Petroleum Division) tabled a summary of the liquidity requirement of PSO for the import of petroleum products into the country.

The energy ministry argued that PSO was engaged in the import of Liquefied Natural Gas (LNG) in the country to meet the energy requirement in terms of LNG and petroleum products.

In order to enable PSO to remain afloat in its payment obligations to LNG suppliers and to continue the LNG supply chain, the ECC allowed a sovereign guarantee in favour of SNGPL for commercial borrowing of Rs50 billion on an immediate basis.

Besides, the Ministry of National Food Security and Research submitted a summary on cotton intervention price (CIP) for the 2023-24 crop and argued that the announcement of CIP at this time, ahead of the main sowing season will help growers decide about the area and investment in cotton crop and expected to enhance yield and area by 10-15 percent.

The ECC approved the proposal of the food security ministry to fix the cotton (phutti) intervention price at Rs8,500/40 kg for the current sowing season to revive cotton production in the country, bring stability in the domestic market and assure a fair return to the farmers. The ECC directed MNFSR to constitute a cotton price review committee (CPRC) with a mandate to review market prices.

The ECC also considered a summary of the Ministry of Commerce on the extension in the shipment period of sugar export and after detailed discussion allowed an extension from 45 days to 60 days time limit for shipment of sugar from the date of quota allocation.

In addition, National Disaster Management Authority (NDMA) submitted a summary on financial requirements for the NDMA execution plan regarding Pakistan’s assistance for Turkey and Syria earthquake-2023. The ECC approved the immediate allocation of Rs10 billion to NDMA for payment for the procurement and transport of the goods to affected areas in Turkey and Syria.