ECC may allow SBP to remit $15 million to Engro Corporation: setting up 'Halal' food company in Holland

The Economic Co-ordination Committee (ECC) of the Cabinet, which is scheduled to meet on Tuesday, is expected to allow the State Bank of Pakistan (SBP) to remit $15 million to Engro Corporation Limited for setting up a 'Halal' food company in Holland.
The very poorly written summary of the Finance Ministry states that the Federal Cabinet in its meeting held on May 16, 2001 had approved the proposal of the Finance Division to allow equity-based investment abroad by resident Pakistanis with a view to further liberalise the economy and to deregulate control over foreign exchange.
For this purpose, the Cabinet approved the criteria. Subsequently, in 2002, the ECC decided that the State Bank of Pakistan (SBP) may approve proposals costing $5 million, and that the proposals costing more than $5 million should be submitted to the ECC for approval.
The SBP has submitted for the consideration of ECC a request of Engro Corporation Limited (holding company overseeing subsidiaries namely, Engro Fertiliser Limited, Engro Food Limited, Engro Polymer and Chemical Limited, Engro Power Gen, Engro Energy and Engro Investment) in connection with setting up a company in the Netherlands namely Engro Foods Limited.
The Netherlands Engro Foods Limited will purchase an established international brand of Halal products. The cumulative export revenue from these business ventures would be around $109 million during ten years from 2011 to 2020.
In addition, dividend is expected to the tune of $40 million during this period. The intended investment will help diversify the export base of Pakistan in the international market. The Finance Ministry has recommended to the ECC to allow Engro Corporation Limited to remit $15 million for setting up a company in the Netherlands namely Engro Foods Limited, The Netherlands. The ECC will review implementation status of the decisions taken in the ECC meetings in January and February, 2011.
In the regard, the decision regarding increase in age limit of imported used cars from 3 years to 5 years will also come under discussion as the Commerce Ministry is to receive authorisation from the Minister for Finance Dr Abdul Hafeez Sheikh to issue notification in this regard. The Commerce Ministry had issued the notification on February 8, 2011, without taking Chairman of ECC (Finance Minister) into confidence. The Commerce Ministry has reported to the ECC that: (i) it had issued an SRO on February 8, 2011, allowing import to the extent of cars not older than five years under the personal baggage, gift and transfer of residence schemes; and (ii) the decision of the cabinet as well as that of the ECC mentions extending age limit of reconditioned vehicles including trucks, buses, tractors, motorcycles, etc.
The Ministry of Commerce sought clarification from the Chairman of ECC as to whether or not age limit of vehicles other than cars shall also be extended and as to whether or not the term reconditioned vehicles implied used cars. According to official documents, the ECC will review key economic indicators for which Finance Ministry will give a presentation, whereas the Ministry of Food and Agriculture (Minfa) will give a presentation on state trading in grain.