Finance Minister Ishaq Dar chairing the ECC meeting on Tuesday. PHOTO: PID
The decision was taken by the Economic Coordination Committee (ECC) of the cabinet, which had a meeting with Finance Minister Ishaq Dar in the chair.
It was for the first time in six years that the farming community will not reap benefits of the increased support price – the minimum rate at which government agencies procure commodity from the farmers. In its five-year tenure, the PPP government had increased commodity prices manifold, almost tripling it from Rs425 per 40 kg in 2008 to Rs1,200 kg in 2012.
The last price increase was announced just months before the last year’s general elections when the PPP government raised the support price for wheat by Rs150 per 40 kg to Rs1,200 - up by 14.3%. The decision not to increase the prices was taken by the Ministry of Food in consultations with the provinces, said officials.
The ECC approved the summary of Ministry of National Food Security and Research for fixing procurement target for the wheat crop 2013-14 at 8 million metric tonnes. The federal government and the four provincial governments will require Rs240 billion financing to procure the commodity from the farmers, according to the officials.
The ECC decided that Pakistan Agriculture Storage and Supply Corporation will buy 1.6 million metric tons of wheat. The maximum procurements will be made by the Punjab government which will procure 4.5 million tons, followed by Sindh (1.3 million metric tonnes), Khyber-Pakthunkhwa (450,000 metric tonnes), and Balochistan (150,000 metric tonnes).
| Province/Agency | Target (Million Tons) |
| Punjab | 4.500 |
| Sindh | 1.300 |
| Khyber Pakhtunkhwa | 0.450 |
| Balochistan | 0.150 |
| PASSCO | 1.600 |
| Total: | 8.000 |
Ban on gold import
For a second consecutive time, the ECC has decided to extended ban on the import of gold till the end of current month. The Finance Minister has repeated his previous directions to the Ministry of Commerce, asking it to reexamine the issue holistically for submission of the matter to the ECC in its next meeting, according to an official handout.
The ECC had temporarily imposed a ban in July last year after reports that the importers were smuggling gold to India and reaping benefits. The imports and subsequent smuggling adversely affected the foreign currency reserves of the country.
In contrast, Dar asked the Commerce Ministry to lift restrictions on the export of gem stones imposed last month.
Export of sugar
The Finance Minister had directed the officials of the Ministries of Commerce and Industries to ensure shipment of export quota of sugar up to 500,000 metric tons. He said that both the ministries and the State Bank of Pakistan should reconcile their data on sugar export.
He also directed the Commerce Ministry to submit a comprehensive policy on sugar.
During the meeting, the finance minister said that all economic indicators were on the positive trend. He said growth was moving up, inflation was going down. He further said the foreign exchange reserves were growing and value of rupee was appreciating. He added that the economic scenario of the country was moving in the right direction.
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