The meeting of the ECC of the cabinet was held under the chair of Finance Minister Ishaq Dar in Islamabad.
The ECC also decided to set up a committee headed by Minister of States and Frontier Regions (SAFRON) Abdul Qadir Baloch to ascertain the distribution mechanism followed for the allocation of wheat to the IDPs.
The other members of the committee include Minister for Textile Industry Abbas Khan Afridi, secretaries of Ministry of National Food Security and Commerce and a representative of Governor Khyber Pakhtunkhwa.
Import of CNG kits
Giving in to increasing diplomatic pressure, ECC also lifted the ban on import CNG cylinders and kits for original equipment manufacturers.
The decision to lift ban on import of CNG kits, cylinders and related parts at a time when the government has severely curtailed gas supply to CNG stations highlights flaws in state policies. The government has diverted gas supply away from CNG stations to increase power generation during Ramazan.
According to a handout issued by the Ministry of Finance after the ECC meeting, the committee approved a summary of Ministry of Petroleum and Natural Resources for allowing import of CNG cylinders, kits and parts for conversion of vehicles.
Officials said that Italian firm Landi Renzo - that produces auto gas and CNG kits for cars - was pushing for the reversal of the ban imposed in 2011. They added that Italian and Japanese embassies were also advocating for lifting the ban.
The Federal Board of Revenue had opposed the move and argued that due to extreme shortage of gas, the government should not allow the import of kits. It suggested that in case it was imminent to lift the ban, the government should charge higher import taxes.
During the last tenure of Pakistan Peoples Party (PPP), the ECC slapped a blanket ban on company-fitted CNG kits and cylinders in locally manufactured vehicles and also imposed curb on their import.
Import of live animals
Further, the ECC approved the lifting of ban on import of live animals from countries which have been declared as having negligible Bovine Spongiform Encephalopathy (BSE) risk by World Animal Health Organisation (OIE) excluding Israel. Pakistan had imposed the ban in 2001 owing to risks from BSE, commonly known as mad cow disease.
In May this year, US Deputy Secretary of State William J Burns requested Pakistan to lift ban on import of live animals from the US. Burns had made the request during a meeting, which was held in Islamabad, with Finance Minister Ishaq Dar.
However, the ECC retained ban on import of feeds containing meat, bone meal and greaves which are derived from BSE infected animals. It was also decided that animals from herds which have no reported case of BSE for the last 11 years, duly certified by the veterinary authority of the exporting country, will be allowed for import.
The ECC also extended a deadline for export of 250,000 metric tons of sugar till October. The body decided to extend the shipment period from 45 to 90 days for export and reduce advance deposit from 25% to 15%. It was further decided that there will be no confiscation of advance deposits by the exporter if they fulfil their quota in 90 days.
The ECC, on the recommendation of Ministry of Industries and Production, also decided to approve average transportation cost of Rs20 per 50kg of imported urea bags from the National Fertilizer Marketing Limited warehouses to dealers. To facilitate farmers, ECC decided that the government will bear a subsidy worth Rs150 million in this regards.
Dar directed the ministries that summaries for ECC’s consideration should be submitted in advance and necessary background information must be provided. Currently, in most cases, the ministries table their summaries during the ECC meetings, denying stakeholders a chance to thoroughly scrutinise the proposals.
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This approval thing and the preparations should have been done before the operation. Clearly, ill prepared government's lethargic attitude continues despite human catastrophe.