ECC approves tender to import 120,000 tonnes wheat

ISLAMABAD: The Economic Coordination Committee (ECC) has approved a tender to import 120,000 tonnes of wheat for complying with the federal cabinet directives to procure 4 million tonnes to build up strategic reserves for the current financial year and to stabilise local prices.

Federal Minister for Finance and Revenue, Shaukat Tarin, presided over the ECC of the Cabinet at the Finance Division on Thursday.

Sources said the prices of wheat in the international market had gone up by 40 percent so the government would have to absorb higher prices to build up strategic reserves.

The approval was made on the recommendation of the Ministry of National Food Security and Research.

The ECC urged the Trading Corporation of Pakistan (TCP) chairman to expedite wheat import to stabilise local prices and to ensure smooth supply across the country.

The committee also directed the TCP chairman to present a detailed report to the adviser on commerce regarding the timeline of wheat import and other requisite details at the earliest.

The Ministry of Maritime Affairs presented a summary regarding revision in tariff enabling Fauji Oil Terminal & Distribution Company (FOTCO) to meet operating and maintenance expenses which were approved in the year 2000, for the period of the 20 years, but not revised.

After due deliberation, the committee approved the revision in tariff for FOTCO, locked for 5 years, to be paid in equivalent rupees.

The ECC constituted a sub-committee comprising representatives of M/o Petroleum, OGRA, PSO, M/s AF Ferguson, M/o Maritime Affairs and Finance Division to be headed by chairman, and deputy chairman planning to decide about tariff differential accumulated between 2012 to 2020.

The Ministry of Maritime Affairs tabled another summary regarding relaxation to 19 subsidiary companies of PNSC under Public Sector Companies (Corporate Governance) rules.

The ECC approved relaxation in rules till June 2021 with a direction to explore the option of formulating independent boards for the subsidiaries to be headed by CEO as per the principles of corporate governance.

The ECC considered an approved summary presented by the Ministry of National Health Services regarding exemption from taxes and duties on import of auto disable syringes and raw materials-products for local manufacturing of auto disable syringes enabling transformation from conventional to auto disable syringes.

Federal Board of Revenue (FBR) chairman presented a summary to strengthen Inland Revenue Enforcement Network (IREN) to combat tax evasion and leakages of duties payable on specified goods through enforcement of the Track and Trace system.

The IREN will also check the goods supplied out of erstwhile FATA/PATA areas for ascertaining validity and conformity. The ECC considered and approved the summary.

In his remarks, Tarin, as chairman of ECC, stated that FBR would create goodwill and avoid harassment in enforcement of rules and regulations for collection of taxes and duties.

“At the same time, FBR will take firm action to prevent tax evasion and broaden tax base to contribute into the national exchequer. A proper system of check and balance will be followed.”

The Minister urged FBR to use the latest technology based solutions for tax collection to reduce reliance on traditional enforcement methodology.