ECC allows export of 100,000 tonnes of sugar

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday allowed export of 100,000 tonnes of sugar.

Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired the ECC meeting.

At the outset, the minister shared update on current economic situation and macroeconomic stability achieved across all sectors of economy. He said the currency was now in stable position with foreign exchanges at a 26-month high at the back of “very resilient and strong remittances flows”.

He said the IT exports had also stabilised at about $300 million monthly figure, which was a great news for our export sector. He lauded steady growth in the RDAs with 165 million dollars inflows received last month.

He called reduction in inflation to a single digit a big story, hoping inflation would further come down when the September data is released.

He described the situation with Current Account as very encouraging, and noted surplus of $75 million achieved in August. He hoped with softer oil prices, a softer dollar and an aggressive rate cut, which had already been reduced by 450bps, Current Account situation would continue to be in a good position.

The minister also spoke about rejection by the government of all bids for treasury bills on Wednesday, saying the move was aimed at conveying the message government was under no desperation to borrow. And if it were to borrow, it would borrow at its own terms.

He urged banking system to focus on lending to private sector. He said 450bps cut in policy rate and resultant ease in borrowing would help government reduce its single largest expenditure of debt servicing. It would create room for banking sector to step up and lend aggressively to private sector, he added.

The minister also referred to IMF Board meeting on 25th, saying, “We would hear a good news on 25th and move on from there”.

He noted macroeconomic stability was not an end itself, but a means to an end. He called it basic hygiene and building blocks that provide foundation to the whole edifice. “We would move in the right direction on the basis of this approach, and ensure gradual stability in the micro sectors as well”, he added.

During the meeting, ECC considered a summary from Ministry of Industries and Production regarding export of 40,000 metric tonnes of sugar to Tajikistan. The ECC approved the proposal. However, it directed after further discussions with the Tajik entity, final form of sale agreement be brought back to ECC for approval.

The Ministry of Industries and Production, in conjunction with Trading Corporation of Pakistan (TCP), will lead this process.

The ECC also approved another proposal from Ministry of Industries and Production regarding further export of 0.100 million metric tonnes of surplus sugar. The meeting was told price of sugar had shown a downward trend since July, while sufficient stocks of sugar were available to meet domestic requirements up to January next year.

After deliberations, ECC approved export in line with terms and conditions decided by the Committee in its meeting on June 13, 2024.

The ECC reviewed a Ministry of Interior’s proposal concerning release of funds through a Technical Supplementary Grant for Project Implementation Letters of HQ Frontier Corps (FC), Khyber Pakhtunkhwa (South). The ECC gave approval for Rs456.6 million funds. The funds will be released as Grant-in-Aid to Interior Division for construction of eight women facilities in tribal districts.