Rs1.8b okayed for VVIP copters repair

20 new diplomatic positions being created in China to reduce trade deficit

ISLAMABAD:

The government on Friday approved billions of rupees funds for repair of helicopters being used by the president and the prime minister and for the creation of 20 new diplomatic positions in China aimed at reducing the nation's trade deficit.

The Economic Coordination Committee (ECC) of the cabinet, which took the decisions, also instructed to dispose of up to three-year-old imported wheat stocks at the ratio of half-local and half-imported wheat. The country still has about 547,000 metric tons of imported wheat stock from the years of 2021 and 2022. Subject to quality test, the stocks will now be given to the armed forces, Khyber-Pakhtunkhwa, Gilgit-Baltistan, Azad Kashmir and the Utility Stores Corporation.

The ECC approved a grant of Rs1.8 billion for the Ministry of Defence for overhaul of engines of two VVIP aircraft being utilised for state duties with the president and the prime minister of Pakistan, according to the Ministry of Finance press statement.

A proposal by the Ministry of Commerce for the allocation of supplementary grant amounting to Rs226.7 million to support its trade and investment missions in China was also considered and approved by the ECC, said the ministry.

Prime Minister Shehbaz Sharif had approved the creation of 20 new diplomatic positions in China to expand the nation's exports and reduce its trade deficit currently standing at $12 billion.

The ECC also approved a proposal from the Ministry of Interior for the grant of Rs252.7 million against the same amount surrendered by the Ministry of Housing and Works, for allocation to Capital Development Authority to ensure uninterrupted provision of civic services at the Prime Minister's Office (Public), Prime Minister's Office Internal and Prime Minister's Staff Colony.

The ECC meeting also approved a summary by the National Accountability Bureau for a supplementary grant Rs376 million for paying rewards to the employees of the anti-corruption watchdog.

The ECC approved a proposal of the Ministry of Interior for provision of Rs2.9 billion as supplementary grant to Directorate General Immigration & Passports for purchase of two e-Passport Personalization systems and six desktop personalization machines for uninterrupted and smooth official business of the Directorate in the public interest.

Wheat summary

The ECC considered a proposal from the Ministry of National Food Security & Research for allocation of domestic and imported wheat stocks of PASSCO among wheat-deficient agencies, regions for this year.

The ECC discussed the issue threadbare and decided that domestic and imported wheat would be allocated and released by PASSCO based on allocation ratio decided by ECC on 1st February 2024, till full disposal of imported wheat stock, said the Finance Ministry.

It, however, directed that the wheat to be picked up by agencies and regions be tested beforehand for the purpose of quality and fitness for consumption.

Some members of the ECC and the participants had objected to the poor quality of imported wheat and showed reluctance to buy it. However, the ECC decided that these entities will have to buy the imported wheat too.

In order to dispose of the old imported wheat stock of 555,000 metric tons, PASSCO has proposed that the release ratio for agencies/regions should be 50% domestic and 50% imported in order to reduce higher risk of deterioration of quality of imported wheat due to pest infestation and other issues.

The ECC decided that in the case of GB, the imported wheat ratio will be 25%. Both the GB and Army had requested 100% domestic wheat claiming quality, taste, and texture issues. Similar concerns have been raised by AJ&K.

But the federal government was of the view that the old imported wheat stock had to be disposed of because it was procured in 2021 and 2022 and its holding cost was higher than the domestic wheat due to high initial procurement price and compounding interest rate.

The cost of the remaining stock of imported wheat was Rs87 billion but its current market value was Rs41 billion, the ECC was informed.

The ECC did not take a decision on the outstanding receivables of Rs193 billion of the PASSCO due to an objection by the Ministry of Finance. Out of the Rs193 billion, the Ministry of Finance itself is a defaulter on Rs91 billion payments. The Khyber Pakhtunkhwa government has also not paid Rs36.5 billion while the Punjab government owes Rs32.5 billion to the PASSCO. Sindh government has also not paid Rs17.5 billion dues to the federal agency on account of the wheat it procured.