TUESDAY APRIL 12: Funds for new procurement: Passco allowed to sell 0.2 million tons of wheat

ISLAMABAD: The Economic Co-ordination Committee of the Cabinet (ECC) on Monday allowed Passco to dispose of 0.2 million tons surplus stock of wheat in an effort to generate funds for procurement of wheat during 2011. The ECC meeting was presided over by Finance Minister Dr Abdul Hafeez Sheikh. It was given a detailed briefing on total surplus wheat stocks in the country and with the Passco on a summary moved by the Minfa.
Sources said that the ECC decided that Passco would sell/export 0.2 million tons of surplus wheat out of total 1.3 million tons and would keep the remaining quantity as strategic reserve. They said that the government plans to meet the major portion of required Rs 164.978 billion funds for procurement of 6.57 million tons wheat by the public sector in 2011. The federal government would arrange Rs 105 billion through export of 3.5 million tons of wheat before 2011 procurement operation.
The ECC has already allowed Punjab to export 2 million tons of wheat and a fresh summary was moved by the Minfa seeking approval of the ECC for sale/export of 0.2 million tons of wheat from its stores. According to sources, the ECC also constituted a committee on the issue of Rs 4.6 billion subsidy to the farmers on 225,000 tons imported urea. The meeting was informed that the Trading Corporation of Pakistan (TCP) had imported 125,000 tons of urea at a cost of Rs 2102 per ton from Saudi Basic Industries (SABIC) and 100,000 tons through an open tender basis at Rs 1902 per ton.
The subsidy involved in the open tender of urea worked out at Rs 932 per bag and on SABIC Rs 1132 per bag, provided local price does not exceed Rs 970 per bag. The import of urea via Gwadar port was relatively costlier by Rs 100 per bag on account of upcountry transportation charges, an official was quoted as saying.
Meanwhile, a statement said that in the summary moved by the Ministry of Finance to the ECC it was proposed that institutional investment in the National Savings Scheme may be discontinued, except that individual funds like pension, gratuity, superannuation, contributory provident fund and trusts, etc, held by the institutions may be allowed for investments in NSS. The proposal was earlier submitted to the Prime Minister by the Finance Division desiring that the same may be placed before the ECC for discussion and decision.
The meeting also constituted a committees for further deliberation on the summaries moved by the Ministry of Food and Agriculture, Ministry of Industry of Production on the cost of Wayen Poly Purphelane Bags, and subsidy on sale price of imported urea. In the summary the Ministry of Food and Agriculture has proposed that Passco be allowed to sell 200,000 tons of wheat lying in its stores. The Finance Division has already concurred approval. Earlier, the ECC was given presentation on the implementation of the last decisions made by the Committee. The Minister for Finance as Chairman of the Committee observed that the pace of implementation on the decision was slow, and instructed the concerned secretaries to accelerate it.