SUNDAY MAY 08: Import of urea approved by ECC: quantity not decided yet

ISLAMABAD: The Economic Co-ordination Committee (ECC) of Cabinet on Saturday approved import of urea for Kharif 2011 and allowed procurement of 0.4 million tons from sugar mills. The ECC meeting chaired by Finance Minister Dr Abdul Hafeez Sheikh gave approval of urea import but the quantity has not been decided yet.
On a summary moved by the ministry of industries it was proposed that as per the Cabinet decision to maintain strategic reserves of sugar, the ECC may consider replenishment of the TCP stocks by purchase of 0.4 million tons of sugar from PSMA in staggered quantities of 50,000 tons per month by the TCP as strategic reserves, the committee approved it.
However, the ECC has constituted a committee headed by the State Bank Governor to draft the modalities for the same and report it in next three days to ensure no such crisis again happens in future. The ECC also decided that the tariff rationalisation plan proposed by the Planning Commission would be implemented in phases in three years.
According to a statement, the meeting also decided waiver of demurrage charges on Afghan Transit at Karachi Port. An official said it was decided that part of this plan would be implemented in upcoming budget 2011-12 and remaining proposals at the time of the announcement of the Strategic Trade Policy Framework 2012-15.
On a summary moved by the ministry of petroleum and natural resources on options for the fertiliser curtailment and distribution, the ECC has approved this summary whereby SNGPL will be supplying 40 mmcfd gas to fertiliser sector by installing equivalent volume from IPPs. Representatives of fertiliser industry agreed that they will make direct arrangements with IPPs for payment of two-third of the total incremental cost as their share.
The committee discussed at length the waivers of demurrage charges on Afghan Transit at Karachi Port. The prime minister during his visit to Kabul had desired that the ministry of port and shipping may place a summary in the ECC for consideration of waiver. As per procedure the consignee has to complete customs formalities and obtain a clearance certificate for removal of goods from the port, and the committee has approved it.
On a summary moved by the ministry of petroleum and natural resources for supply of gas to KESC, the ECC asked for detailed presentation on the formula for the price differential adjustment which will be reimbursed to the KESC by the ministry of finance.
The ECC deferred the summary on the allocation of gas from Kandhkot and Mari Gas Fields to Guddu thermal power station. Those who attended the meeting included minister for water and power, adviser to prime minister on petroleum and natural resources, governor State Bank, deputy chairman Planning Commission, secretaries of the concerned ministries and chairmen of various corporations and high officials of concerned departments.