ECC decides to extend ban on import of gold till March 20
ECC approves summary for resumption of POL supplies at 6 Non-Internal Freight Equalization Mechanism (IFEM) Oil Depot.
Finance minister Ishaq Dar presides over the ECC meeting on Wednesday. PHOTO: PID
ISLAMABAD:
The Economic Coordination Committee of the Cabinet (ECC) on Wednesday extended a temporary suspension on import of gold till March 20, 2014.
The meeting was chaired by Finance Minister Ishaq Dar in Islamabad on Wednesday.
The ECC extended the temporary suspension on import of gold under SRO 760 till March 20, 2014. The Finance Minister directed Secretary, Ministry of Commerce, FBR and SBP to hold a meeting with all the stakeholders and bring proposals and recommendations to ensure export of gold jewelry to the extent of the gold imported for value addition.
Earlier, the finance secretary presented a review of the key economic indicators. The ECC was informed that the large scale manufacturing sector has witnessed a growth of 6.8% as compared to 2.3% of corresponding period of the last fiscal year. Fertiliser sector has shown a growth of 28.5%, food beverages 18%, paper and board 17%, electronic 12% and leather products 9.61%.
The ECC was informed that year-on-year inflation rate based on Consumer Price Index (CPI), Whole Price Index (WPI) and Sensitive Price Index (SPI) for the month of January 2014 remained at 7.9%, 8.1% and 7.7% respectively. He informed ECC that the reported stock of wheat as on February 2014 is 2.7 million tons showing sufficient quantity of local wheat is available for daily releases to mills.
The total reported stock of sugar stood at 2.3 million tons and the stock of various POL products average 20 days supply on February 24, 2014.
It was further informed that workers’ remittances have reached to $9.033 billion in July 2013-January 2014 against $8.206 billion during corresponding period in 2012-13 showing an increase of 10.1%.
ECC was informed that on February 24, 2014, the foreign exchange reserves stood at $8.6 billion. Finance Minister observed that the foreign exchange reserves are stable and improving gradually, which is a healthy sign for the economy. He hoped that the exchange reserves would reach double figures by the end of March this year.
Dar said that in his last meeting with IMF, they also observed that GDP growth rate is getting better even more than their expected target. He said that with the significant increase in FBR collection, he expects that the provinces would get Rs219 billion more than the last year.
The ECC was also informed that during July-January 2013-14, FBR tax collection stood at Rs1,197 billion as compared to Rs1,022 billion in the same period last year, thereby posting an increase of 17.2%. During this period inflow of Foreign Direct Investment stood at $1,116 billion.
The meeting was also attended by the Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister for Commerce, Engineer Khurram Dastgir Khan, Minister for Science and Technology Zahid Hamid, Minister for Planning, Development and Reform Ahsan Iqbal, Minister for Industries and Production Ghulam Murtaza Khan Jatoi, Minister for National Food Security Sikandar Hayat Khan Bosan, Secretaries of the concerned ministries and senior officials of the government.
Resumption of POL supplies at IFEM
The ECC also approved summary of the Ministry of Petroleum and Natural Resources for resumption of POL supplies at six Non-Internal Freight Equalization Mechanism (IFEM) Oil Depots subject to the following:
i) Government of Pakistan will not take any financial impact.
ii) OGRA will put in place an appropriate mechanism to ensure the prevention of dumping and misuse of IFEM.
The location of oil depots where POL supplies will be resumed include Daulatpur, Khuzdar, Sangi, Habibabad, Kundian and Serai Naurang.
It may be mentioned that due to reduced availability of gas to CNG stations and use of MOGAS in generators, the demand of POL products has increased up to 21% during the last two years necessitating for the opening of abundant depots to overcome the shortage. By opening of the above depots, 26,000MT storage capacity will be available in the system.
OGRA will monitor the movement of products as per their rules/policies.
The Economic Coordination Committee of the Cabinet (ECC) on Wednesday extended a temporary suspension on import of gold till March 20, 2014.
The meeting was chaired by Finance Minister Ishaq Dar in Islamabad on Wednesday.
The ECC extended the temporary suspension on import of gold under SRO 760 till March 20, 2014. The Finance Minister directed Secretary, Ministry of Commerce, FBR and SBP to hold a meeting with all the stakeholders and bring proposals and recommendations to ensure export of gold jewelry to the extent of the gold imported for value addition.
Earlier, the finance secretary presented a review of the key economic indicators. The ECC was informed that the large scale manufacturing sector has witnessed a growth of 6.8% as compared to 2.3% of corresponding period of the last fiscal year. Fertiliser sector has shown a growth of 28.5%, food beverages 18%, paper and board 17%, electronic 12% and leather products 9.61%.
The ECC was informed that year-on-year inflation rate based on Consumer Price Index (CPI), Whole Price Index (WPI) and Sensitive Price Index (SPI) for the month of January 2014 remained at 7.9%, 8.1% and 7.7% respectively. He informed ECC that the reported stock of wheat as on February 2014 is 2.7 million tons showing sufficient quantity of local wheat is available for daily releases to mills.
The total reported stock of sugar stood at 2.3 million tons and the stock of various POL products average 20 days supply on February 24, 2014.
It was further informed that workers’ remittances have reached to $9.033 billion in July 2013-January 2014 against $8.206 billion during corresponding period in 2012-13 showing an increase of 10.1%.
ECC was informed that on February 24, 2014, the foreign exchange reserves stood at $8.6 billion. Finance Minister observed that the foreign exchange reserves are stable and improving gradually, which is a healthy sign for the economy. He hoped that the exchange reserves would reach double figures by the end of March this year.
Dar said that in his last meeting with IMF, they also observed that GDP growth rate is getting better even more than their expected target. He said that with the significant increase in FBR collection, he expects that the provinces would get Rs219 billion more than the last year.
The ECC was also informed that during July-January 2013-14, FBR tax collection stood at Rs1,197 billion as compared to Rs1,022 billion in the same period last year, thereby posting an increase of 17.2%. During this period inflow of Foreign Direct Investment stood at $1,116 billion.
The meeting was also attended by the Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister for Commerce, Engineer Khurram Dastgir Khan, Minister for Science and Technology Zahid Hamid, Minister for Planning, Development and Reform Ahsan Iqbal, Minister for Industries and Production Ghulam Murtaza Khan Jatoi, Minister for National Food Security Sikandar Hayat Khan Bosan, Secretaries of the concerned ministries and senior officials of the government.
Resumption of POL supplies at IFEM
The ECC also approved summary of the Ministry of Petroleum and Natural Resources for resumption of POL supplies at six Non-Internal Freight Equalization Mechanism (IFEM) Oil Depots subject to the following:
i) Government of Pakistan will not take any financial impact.
ii) OGRA will put in place an appropriate mechanism to ensure the prevention of dumping and misuse of IFEM.
The location of oil depots where POL supplies will be resumed include Daulatpur, Khuzdar, Sangi, Habibabad, Kundian and Serai Naurang.
It may be mentioned that due to reduced availability of gas to CNG stations and use of MOGAS in generators, the demand of POL products has increased up to 21% during the last two years necessitating for the opening of abundant depots to overcome the shortage. By opening of the above depots, 26,000MT storage capacity will be available in the system.
OGRA will monitor the movement of products as per their rules/policies.