ECC bans wheat export, calls for price control meeting

Also allows revision in fertiliser prices and PIA budget re-appropriation

ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday imposed a ban on the export of wheat and wheat flour.

It also asked the National Price Monitoring Committee to convene a meeting in order to suggest measures in cooperation with provincial governments to control the hike in prices of wheat products in the domestic market.

Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh presided over the ECC meeting.

The Ministry of National Food Security and Research presented a report on wheat stocks in the country.

Pakistan decides to export 500,000 tons of wheat

Although adequate stocks of wheat were available to cater to needs of the population, it was highlighted that the procured wheat in the current year was 33% less than the quantity purchased by the government last year. The recent hike in prices of wheat and wheat flour was also a cause for concern.

Fertiliser prices revised

The ECC permitted National Fertiliser Marketing Limited (NFML) to fix the dealer transfer price for a 50-kilogramme imported urea bag at Rs1,800, which was Rs166 less than the prevailing average market price of Sona Urea of Rs1,966 per bag.

The difference between the urea import price and approved dealer transfer price for NFML dealers has been estimated at Rs937.92 million. NFML has been directed to ensure the enforcement of this price in coordination with the provincial governments.

Budget re-appropriation for PIA

The ECC allowed Pakistan International Airlines (PIA) Corporation Limited to re-appropriate its already approved budget of Rs24 billion in order to upgrade the in-flight entertainment system of its eight Boeing 777 aircraft. The project will cost Rs700 million.

Such measures would improve occupancy rate of the airline from the current 70% to 80%, the meeting was briefed.

Change in PBS’s base year

The ECC endorsed decision of the governing council of the Pakistan Bureau of Statistics (PBS) on changing the base year of price statistics from 2007-08 to 2015-16.

The new base year features the inclusion of rural markets, introduction of population weight based on the recent population census 2017, computation of indices based on weighted geometric mean, introduction of consumption quintiles instead of income quintiles, introduction of consumer-weighted approach to compute gas prices for the combined income group and introduction of GST, other taxes and fuel price adjustment to compute electricity tariffs using the consumer-weighted approach.

PTI govt rejects proposal of banning wheat export

For the purpose of comparative analysis, it was decided that the old series of 2007-08 would continue to be published for another year along with the new series of 2015-16.

On a summary presented by the Ministry of Commerce and Textile, it was decided that the scrap slag, ash and residues containing metals, arsenic or their compounds (containing mainly aluminium under PCT 2620.4000) may be moved from banned items to restricted items of the Import Policy Order 2016.

However, in order to forestall the chances of import of hazardous waste, the imports may be subject to following conditions.

Importable only by industrial consumer having recycling facilities, subject to NOC from the Ministry of Climate Change and duly certified by the provincial Environment Protection Agency (Federal EPA, in case of Islamabad Capital Territory).

Provision of a pre-shipment inspection certificate and consent of the Focal Point of Basel Convention from the country of export to the effect that the waste/scrap is non-hazardous as defined in the Basel Convention. Imported consignments of registered recycling plants shall be cleared from seaport only.

MIP for tobacco

The ECC also considered and approved the notification of minimum indicative prices (MIP) of tobacco for fiscal year 2019-20.

As per Section 8 of the Pakistan Tobacco Board Ordinance 1968, the MIP for different grades of various types of tobacco is to be notified by the federal government.

The price for plain FCV tobacco was suggested at Rs190.63, sub-mountainous FCV tobacco at Rs218.77, WP tobacco at Rs82.85, Burley tobacco at Rs150.54 and DAC tobacco at Rs94.76.

New PCT codes

Moreover, the ECC allowed new PCT codes, as created in the Pakistan Customs Tariff (PCT), through the Finance Act 2019, to be incorporated into SRO 693(I)/2006 dated July 1, 2006.

This would allow the levy of additional customs duty, collected on sports utility vehicles (SUVs) of engine capacities 1,001cc to 1,500cc and 1,501cc to 1,800cc, which have been localised, to be appropriately accounted for under separate PCT codes.

A report on the National Poverty Graduation Programme of $82.6 million was also submitted for consideration of the ECC by the Economic Affairs Division secretary. 

Published in The Express Tribune, July 18^th, 2019.

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