The Cabinet which is scheduled to meet on Wednesday (July 14) with Prime Minister Syed Yousuf Raza Gilani in the chair, will consider a special committee's report on sugar import scam in the Trading Corporation of Pakistan (TCP). The committee headed by the Minister for Industries and Production, Mir Hazar Khan Bijarani questioned the TCP chairman in the meeting for the delay in import of sugar, which resulted in increase in sugar prices in the domestic market.
Talking to Business Recorder, Bijarani said the committee has finalised its recommendations for the Cabinet and the ECC, adding that this issue may be taken up by the Cabinet today. The Cabinet in its meeting on June 30, 2010 had directed a full-fledged probe to be initiated by a competent forum, to fix responsibility for sugar issues.
Official documents obtained from the Ministry of Industries and Production reveal that the Cabinet which met on June 30 inexplicably held the TCP chairman responsible for the steady rise in sugar prices in spite of the fact that sugar prices are not controlled by the TCP.
The documents further disclosed that the Cabinet members expressed serious concern over the all-time high sugar price in the country and observed that the matter needed to be taken seriously in the wake of increasing sugar demand during Ramazan. It was pointed out that the delay in the import of sugar was a reflection of TCP's inability to import sugar to fill the demand-supply gap.
It was also observed that in spite of clear-cut directions from the Cabinet and the ECC, TCP failed to import the requisite quantity of sugar by the target date. The Cabinet was further informed that the ECC of the Cabinet in its meeting held on June 29, 2010 considered the rising sugar price in terms of TCP's failure to observe the timeline given by the ECC to import sugar. The Cabinet was apprised that the ECC has constituted a special committee of ministers to thoroughly examine the documents and factors which led to non-compliance of the ECC decisions by the TCP.
According to the documents, the Cabinet took serious note of TCP's inability to pursue the timeline for import of sugar and advised the special committee, constituted by the ECC in its meeting on June 29, 2010, to expedite its probe and place the report in the next meeting of the ECC, which will be submitted to the Cabinet. The Cabinet advised that the composition of the said committee be enlarged and to revisit its Terms of Reference (ToR) to include therein a thorough probe by a competent forum for fixing responsibility. The Cabinet directed prompt action for ensuring uninterrupted provision of essential food items including sugar and wheat to people, particularly during Ramazan.
Replying to a question, he said the federal government has already written to the provincial governments for taking administrative measures to bring the 'hidden' sugar to the market.
Answering another question, he said the government would ensure availability of sugar at reasonable prices not only during Ramzan but till November when the new crop will come to the market. He further said the government will interfere in the market by providing additional sugar to the Utility Stores Corporation.
Other items of regular agenda are as follows: (i) status of implementation of Cabinet decisions; (ii) decisions taken by Economic Co-ordination Committee (ECC) of the Cabinet in its meetings on June 29 and July 1, 2010; (iii) approval of the Cabinet to sign Memorandum of Understanding (MoU) with member states of South Asia Co-operative Environment Programme (SACEP) on regional oil and chemical pollution contingency plan for South Asia; (iv) approval, in principle, of the Cabinet to start negotiations for MoU on Pak-UK co-operation for counter terrorism outreach and communications; (v) approval, in principle, to start negotiations on an agreement on extradition treaty between Pakistan and Spain; (vi) approval, in principle, to start negotiations on an agreement on mutual legal assistance in criminal matters between Pakistan and Spain besides starting negotiations on MoU with some countries for co-operation in combating illicit trafficking of narcotics drugs, psychotropic substances and their precursor chemicals. The Cabinet will also consider National Anti Narcotics Policy - 2010 and policy and plan for Haj - 2010.
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