ECC allows Sindh mills to export 32,000 tonnes of sugar

ISLAMABAD: The Economic Coordination Committee on Friday approved the export of 32,000 metric tonnes of sugar to mills located in Sindh within 60 days. Additionally, a supplementary grant of Rs250 billion was approved to enhance the financial resources of the provinces for the outgoing fiscal year.

For export purposes, the government allocated sugar export quota of 250,000 MT, with Punjab receiving 61 percent, Sindh receiving 32 percent, and Khyber Pakhtunkhwa receiving seven percent of the quota.

The distribution of export quotas for sugar mills in Sindh was delayed due to litigation in the Sindh High Court. However, the court allowed the allocation of 48,000 MT out of the total allocated quota of 80,000 MT to 32 sugar mills by the cane commissioner, Sindh.

The Pakistan Sugar Mills Association (PSMA) sought permission from the ministry to export the remaining 2,861 MTs of sugar from mills that had received payments but couldn’t export within the stipulated time. The ECC approved the export of the remaining quantity of sugar quota till July 15, 2023.

In another matter, the ECC was informed that an allocation of Rs10 billion had been made under the heading ‘Ways and Means Advances to Provinces’ during the current fiscal year. However, Khyber Pakhtunkhwa had availed advances amounting to Rs224 billion from Ways and Means till May 24, 2023, exceeding the allocated budget.

To cover the excess expenditure of Rs214 billion and meet the potential future requirements of the provinces during the current fiscal year, a supplementary grant (SG) or technical supplementary grant (TSG) of Rs250 billion is required. According to an official press release on Friday, the meeting of the Economic Coordination Committee was chaired by Federal Minister for Finance and Revenue Ishaq Dar. During the meeting, the ECC approved a summary from the Ministry of Commerce, extending the period for the export of sugar quota by sugar mills in Sindh. It allowed the mills to export the remaining sugar quota of 32,000 MT within 60 days, starting from June 12th, following the decision of the Sindh High Court.

Furthermore, the ECC discussed a summary from the Ministry of Railways, which requested additional funds in the form of a grant-in-aid to Pakistan Railways. These funds are needed to settle pending liabilities, including staff salaries and pensions. The ECC decided to release an additional grant-in-aid of Rs2.5 billion to address the shortfall and ensure uninterrupted operations. The ECC also approved the following technical supplementary grants: Rs250 billion as TSG for the Finance Division to cover Ways and Means Advances Availed by provinces, to compensate for expenditures exceeding the allocated budget and anticipated future requirements of the provinces during the current fiscal year. Rs3.628 billion as TSG for the Ministry of Housing and Works to execute development schemes in all provinces. Rs172.001 million as TSG for the Ministry of Housing and Works to settle ERE liabilities. Rs1,200 million as TSG for the Ministry of Housing and Works to implement 16 development schemes. Rs1,238 million as TSG for the Ministry of Energy (Petroleum Division) to fulfil the government’s commitment to fund Balochistan Mineral Resources Limited’s obligatory contribution to the Reko-Diq Project for FY2022-23.