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Ministers lambaste officials for high prices, shortages

The ministers took the stance that the decision making got delayed mainly because of bureaucracy as they took too long for importing wheat and in the meanwhile the price of wheat increased in the international market

By Mehtab Haider & Mumtaz Alvi
October 28, 2020

Ministers lambaste officials for high prices, shortages

ISLAMABAD: Three federal ministers on Tuesday lambasted the poor performance of bureaucracy during the cabinet meeting and held it responsible for lingering wheat/ flour and sugar crisis.

A heated debate occurred during the proceedings of the federal cabinet held under the chairmanship of Prime Minister Imran Khan where the ministers accused the bureaucracy of delayed decisions, resulting in eruption of wheat/flour crisis like situation in the country. The bureaucracy is responsible for the wheat and sugar crises as they misled the government, they said.

The most vocal ministers including Murad Saeed, Faisal Vawda, Shireen Mazari and some others took the stance that the decision making got delayed mainly because of bureaucracy as they took too long for importing wheat and in the meanwhile the price of wheat increased in the international market.

Ministers lambaste officials for high prices, shortages

When the prime minister had given written instructions in April 2020, why the import of wheat was delayed, the ministers raised the question. One top representative of the Ministry of National Food Security and Research made all-out efforts to defend his ministry and bureaucracy’s position and argued that they moved all summaries before the ECC well in time, so how they could be held responsible. They were of the view that in the aftermath of 18th Amendment, the Ministry of Food is working with minimal workforce.

The federal ministers were of the view that the delayed decision of importing wheat resulted in surge in international market prices as when the first tender of wheat was floated, the international quoted price was $234 per ton. In the second tender, it went up to $274 per ton and in the third tender, it stood at $284 per ton. Who is responsible for these delayed decisions, the ministers raised questions.

When the strategic reserves were minimal at the start of the current season, why the import decision took so long time. First the private sector was allowed where they also took long time knowingly that the government would have to come into the import market to build up its reserves.

However, the prime minister was optimistic about bringing down inflation and resolved not to rest until the commodities rates come down to a reasonable level. The forum was given a detailed briefing by the Ministry of National Food Security on procurement and availability of wheat. The cabinet was informed that the availability of 1.5 million metric tonnes of wheat would be ensured by January 31, 2021.

The Commerce Ministry briefed the cabinet on the wheat import schedule. The cabinet was informed that all remittances would be received on time. The Ministry of Industries and Production informed the cabinet that 266,939 metric tonnes of sugar is currently available in the country. The meeting was told that the private sector has imported 99,639 metric tonnes of sugar and another 52,951 metric tonnes will be available in November. The cabinet was informed that the required 300,000 metric tonnes of sugar would be available by November 30, 2020.

The prime minister directed that a systematic and coordinated approach should be devised to assess the needs of wheat and sugar in a timely manner, which would include the needs of all the provinces. The difficulties in import should be rectified so that there is no shortage. The prime minister emphasized that the quality of imported wheat should be ensured.

A briefing by the Cabinet Division was given to the meeting regarding filling up of vacancies of CEOs and managing directors in various ministries, divisions and their subsidiaries. The cabinet was informed that at present, a total of 129 posts of CEOs and managing directors are vacant in the federal government out of which 33 posts are vacant due to merger process between different agencies.

The prime minister directed all the ministries to fill the vacancies within three months and at the next cabinet meeting submit a report on those vacancies including reasons, which could not be filled.

The cabinet was briefed by the Ministry of Law and Justice on reforms in the Pakistan Penal Code and other laws. The cabinet directed submitting the draft of the reforms to the Cabinet Committee on Legal Reforms and submit all the reforms to the cabinet for final approval within three months. The forum approved proposed amendments to the International Civil Aviation Convention by the Ministry of Aviation.

The cabinet approved four companies to inspect before importing wheat consignments from the Trading Corporation of Pakistan. The meeting approved export of cattle to Gulf countries and also approved the requests for mutual legal assistance received by the government of Pakistan from the governments of Peru, Hungary and Colombia.

The cabinet referred the matter of issuing policy directives under the Telecommunications Act 1996 to the Cabinet Committee on Legal Reforms. The cabinet will decide after receiving recommendations of the committee.

The Ministry of Railways gave a detailed briefing to the cabinet on the restoration and restructuring of the Pakistan Railways. The cabinet was informed that a comprehensive plan has been drawn up to make Railways a profitable and independent entity. The reorganization is in line with the Supreme Court's directives and has been endorsed by the Ministry of Finance, Law and Establishment Division.

The prime minister said this plan would help in timely completion of ML-1 project. The prime minister directed that the process of rehabilitation and restructuring be completed on time. The cabinet endorsed the decisions taken at the meeting of the Cabinet Committee on Energy held on October 15, 2020. The cabinet approved inclusion of the Minister of Industry and Production in the Cabinet Committee on Energy. The cabinet partially endorsed the decisions taken at the meeting of the Economic Coordination Committee dated October 19, 2020.

The prime minister directed the Ministry of National Food Security to formulate a comprehensive package for farmers. The cabinet okayed the secretary Aviation to hold additional charge of director general Civil Aviation Authority till December 31, 2020. However, as per the directions of the Supreme Court, necessary amendments have been made in the relevant law and an advertisement has been issued to solicit candidates from the private sector. This process will be completed within two weeks.

The Planning minister gave a detailed briefing to the cabinet on basic economic indicators. The cabinet was informed that the current account balance has increased from July to August in the current financial year to 1.2% of the GDP, which is a positive economic development. Exports have increased by 27% over the same period last year. The value of the rupee is stabilizing while from July to August, Rs1,004 billion were collected in taxes, which is more than the target. Likewise, foreign exchange reserves have increased which is a great achievement of this government.

The large scale manufacturing sector recorded a growth of 3.7% over the same period last year. The cabinet approved formation of the National Medical and Dental Academic Board under the Pakistan Medical Commission Act 2020 and approved reduction in sentences of prisoners on the auspicious occasion of Eid Miladun Nabi (PBUH).