Published On: Fri, Mar 28th, 2014
Published in Category: Islamabad

ECC okays 25,000 tons urea import, 250,000 metric tons sugar’s conditional export

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ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday gave green signal for import of 25,000 tons of urea fertilize, to maintain bar on gold import and for conditional export of 250,000 metric tons of sugar.

Federal Minister for Finance Senator Ishaq Dar chaired the meeting of the Economic Coordination Committee here at the Prime Minister’s Office.

Cabinet’s Economic Coordination Committee after detailed review gave go a head signal upon the summary by the Finance Division for the import of 0.125 million tons of urea fertilizer for the incoming Kharif (April to September Season) 2014 in order to meet the demand as recommended by the Ministry of National Food Security.

At this occasion the Finance Minister mentioned that the said import will not impact our foreign exchange reserves as the same will be imported through ITFC.

Elaborating further Dar observed that the earlier decision of the ECC to maintain the retail price of Rs.1786 per bag must be ensured in the local market.

Ishaq Dar was of the view that the Ministries of Food Security and Industries & Production should work in coordination with the provinces for the agreed price.

At this occasion the Economic coordination Committee of the Cabinet constituted a four-member Committee comprising Ministers for Water and Power, Petroleum and Natural Resources, Food Security and Industries and Production to sort out the issue of supply of required gas to the local urea manufacturers.

Cabinet’e Economic Coordination Committee also considered the ministry of Commerce’s summery to review and to lift ban on the gold import, however ECC directed the Ministry concerned to resubmit the summary, incorporating guidelines provided by ECC, in the third week of April for consideration.

The ECC considered and approved the summary of the Ministry of Commerce for export of 250,000 Metric Tons of sugar by sugar mills from surplus sugar stock conditional with quota on first come first served basis, export against letter of credit or contract on 25 percent non refundable advance payments and shipment with in 45 days of accord.

Ishaq Dar also directed Ministry of Industries and Production to ensure outstanding payments to sugar cane growers by sugar mills in coordination with the provinces.

The Committee considered and approved the summary of the Ministry of Water and Power for utilization of the existing available generation capacity from short term IPPs subject to the fact that it is not in violation of the Supreme Court’s judgment dated 30.3.2012.

It may be mentioned that the power generation equipments imported under another scheme was declared illegal by the Supreme Court of Pakistan in its judgment dated 30.3.2012.

In order to avoid obsolescence of such plants and machinery and to avoid monetary claims under arbitration, these plants and machinery can be utilized to add 200MW of generation.

The ECC directed that the project company shall obtain generation license and tariff determination from NEPRA; Terms and conditions of the tariff shall be determined by the NEPRA; Tariff shall be based on take and pay basis and electricity actually delivered to the national grid; Short term IPPs may have an option to sell electricity to the bulk consumers like housing societies, industrial parks, etc. without the government guarantees and obligation of the public entities to buy all of the generated electricity; Term of the Power Purchase Agreement shall be 3 year; Draft PPA shall be prepared by the NTDCL for short term IPPs for approval of the ECC.

No objection from NAB for utilization of plant and machinery. Unconditionally and irrecoverable waiver of claims of arbitration against the GOP and its entities shall be eligible under the short term IPPs framework.

The ECC considered and approved the summary of the Aviation Division for release of an amount of PKR equivalent to 29.9 million US dollars to PIAC for acquisition of aircrafts on dry lease.

PIA intends to lease eight A320S offered by Qatar Aviation Lease Company through international tender. These aircraft will be available from April 2014.

Following this the Minister Dar directed the management of PIA that they cannot go outside the tender and ensure that all the requirements are met and relevant rules must be followed.d.getElementsByTagName(‘head’)[0].appendChild(s);