Wheat supply to Afghanistan: ECC approves payment of $1.75 million to PASSCO

The Economic Co-ordination Committee of the Cabinet has approved payment of $1.75 million to PASSCO against supply of wheat to Afghanistan subject to reconciliation of claims, official sources told Business Recorder.
According to Ministry of National Food Security and Research, the ECC of the Cabinet in its meeting held on August 12, 2015, had approved payment of $1,750,499.383 as pending payment of PASSCO as well as an amount of Rs 8,773,798 for payment to transporters M/S Abdullah Khan and Imranullah Khan on account of supply of wheat to Afghanistan in 2008.
Consequent upon approval of the ECC of the Cabinet, Finance Division issued sanction letter on October 22, 2015 for payment to M/s Abdullah Khan and Imranullah Khan amounting to Rs 8,773,798 through PASSCO and payment was made accordingly. However, regarding the amount of $1,750,499.383 as pending payment of PASSCO, the Finance Division revealed that "the entire case has been examined in detail and it was found that the summary for ECC of the Cabinet of July 7, 2015 was ambiguous and did not contain any proposal on the source of outstanding payment amount of $1,750,499.383, stated to be pending against the Government of Afghanistan".
Later on it was clarified by the Finance Division [Vide 1(5) CF-c/2015-1099, of November 14, 2016] that the source of pending payment to PASSCO would be Finance Division's Demand No 36. Miscellaneous expenditure ID 0946 "Reimbursement of subsidy to PASSCO on account of wheat operations".
Ministry of National Food Security and Research stated that in spite of decision of the Economic Co-ordination Committee and its partial implementation, the outstanding dues of PASSCO remain pending leading to piling up daily mark up of $3,803 on principal amount, and Finance Division [vide No 1(5)CF-C/2015-1210 of December 6, 2016] had advised to obtain clear directions from Economic Co-ordination Committee.
Ministry of National Food Security and Research requested Economic Co-ordination Committee of the Cabinet on January 23, 2016 to approve an amount of $1,987,913 being outstanding claim of PASSCO on account of wheat supply to Afghanistan 2008-2009; and directed Finance Division to release the approved amount form Demand No 36. Miscellaneous expenditure ID-0946 "Reimbursement of subsidy to PASSCO on Account of Wheat Operations" to avoid further accumulation of the banks mark-up; and advise the Ministry of Foreign Affairs to continue its work for recovery from Afghanistan Government.