The government on Wednesday approved a price package for Ramazan, extending up to Rs40 in additional subsidy on sale of 16 essential edible items at the utility stores. The subsidy will cost the government a total of Rs2 billion.
The decision was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, headed by Finance Minister Dr Abdul Hafeez Shaikh.
The government would give a minimum of Rs4 in additional subsidy on the sale of flour – selling it at a price of Rs22 per kilogramme (kg) against the current market rate of Rs28 per kg. A maximum of 200,000 metric tones (MTs) of flour would be available for sale at the utility stores.
Tea packs weighing 190 grammes will receive a maximum subsidy of Rs40, selling for Rs 495 against current market price of Rs540 while a kilogramme of ghee/oil is subsidised by Rs15.
The additional subsidy on most items, however, is around Rs10.
Utility stores’ outreach, however, remains limited and most customers complain of the inferior quality of goods supplied at them.
The ECC directed authorities concerned to ensure availability of the essential items throughout Ramazan, said that “no complaint of shortage or deficiency of any item should surface.”
The ECC also asked the ministry of industries to keep monitoring teams alert throughout the country to ensure these items are available at the stores.
Sugar procurement
The ECC turned down a request to allow procurement of 50,000 MTs of sugar from the Pakistan Sugar Mills Association.
The ECC has already allowed for procurement of 200,000 MTs of sugar from the millers.
Total sugar production this year remained at 4.3 million MTs and sugar millers are pressing the government to buy their surplus stocks.
The ECC was of the view that given the satisfactory situation of the strategic reserves, procurement is not required till December 2011.
The finance minister, however, decided to hold a smaller meeting within the next two days. Sources cite reports that a federal secretary is involved in sugar procurement business.
Subsidised wheat, importing urea
The ECC constituted a committee to devise a mechanism for providing subsidy on sale of wheat in Gilgit-Baltistan. The body agreed, in principle, to the proposal of providing subsidised wheat to Gilgit-Baltistan.
The ECC also constituted a committee, headed by the finance minister, to have further deliberations on import of urea for the upcoming crop seasons.
The committee includes Minister for Water and Power Syed Naveed Qamar, Deputy Chairman Planning Commission Dr Nadeem ul Haque, and Minister for Petroleum Dr Asim Hussain.
Clearing power plant’s machinery
The ECC approved the request made by the minister of water and power for the waiver of demurrage and detention charges for a 425 MW Combined Cycle Power Project at Nandipur being implemented by the Northern Power Generation Company.
It linked the approval, however, with an endorsement of the law division. In case the law division raises objections, the matter would be referred to the cabinet for further discussion.
The machinery for the plant is idling at Karachi Port where authorities are asking for the proper follow-up of the procedure for the release of this consignment.
The government approved the plant at Nandipur, District Gujranwala in 2007 at an agreed price of $329 million. However, it was subject to provision of guarantee by the ministry of finance for the loan amounting to $329 million.
| Items | Current market price (Rs/kg) | Current USC sale price (Rs/kg) | Additional Ramazan subsidy (Per kg unless stated) | USC Ramzan Proposed Price (Per kg unless stated) |
| Atta | 28 | 26 | 4 | 22 |
| Ghee/Oil | 170 to 175 | 162 | 15 | 147 |
| Daal Chana | 78 to 80 | 77 | 10 | 67 |
| Daal Moong | 135 to 140 | 132 | 10 | 122 |
| Daal Mash | 140 to 145 | 138 | 10 | 128 |
| Safaid Chana (white gram) | 150 to 155 | 142 | 10 | 132 |
| Baisan (gram flour) | 80 | 73 | 10 | 63 |
| Khajoor (dates) | 130 to 140 | 120 | 10 | 110 |
| Rice (Basmati) | 90 to 95 | 84 | 10 | 74 |
| Rice (Sella) | 90 to 95 | 84 | 10 | 74 |
| Rice (Tota) | 62 to 65 | 61 | 10 | 51 |
| Sharbat (syrup bottle) | 260 | 255 | 10 | 245 |
| Squash (syrup bottle) | 127 | 116 | 10 | 106 |
| Tea (190 gramme pack) | 540 | 535 | 40 | 495 |
| Milk (litre pack) | 76 | 75 | 5 | 70 |
| Spices | 10% on all USC Spices | |||
Published in The Express Tribune, July 21st, 2011.
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