Govt lifts ban on import of CNG kits, live animals

ECC also approves release of 60,000 metric tons of wheat for internally displaced persons.

ISLAMABAD:

The government on Friday lifted a ban on the import of live animals, CNG cylinders and kits, succumbing to increasing diplomatic pressures in these cases.

The decisions were taken by the Economic Coordination Committee (ECC) of the cabinet in a meeting chaired by Finance Minister Ishaq Dar. The decision to lift the ban on the import of CNG kits, cylinders and parts was taken at a time when the government has severely curtailed gas supplies to CNG stations, highlighting flaws in its policies. The government diverted the gas to increase power generation in Ramazan.

The ECC also approved immediate release of 60,000 metric tons of wheat for distribution among internally displaced persons (IDPs) in North Waziristan, at a cost of Rs2.3 billion. A committee, headed by Minister for SAFRON Abdul Qadir Baloch, will ascertain the mechanism used to distribute the wheat among the displaced persons.

Import of CNG kits

The ECC approved a Ministry of Petroleum and Natural Resources summary allowing the import of CNG cylinders, kits and parts for conversion of vehicles at the assembling facilities of original equipment manufacturers, according to a handout issued by the Ministry of Finance after the ECC meeting.

An Italian firm, Landi Renzo, that produces auto gas and CNG kits for cars was pushing for a reversal of the ban, imposed in 2011 due to a shortage of gas, officials said. Japanese and Italian embassies also advocated for the ban to be lifted.

The Federal Board of Revenue had opposed the move and argued that due to the increasing shortage of gas, the government should not allow the import of kits. It has suggested that in the event that the ban is lifted, the government should charge higher taxes at the import stage.

During the Pakistan Peoples Party’s (PPP) tenure, the ECC slapped a blanket ban on company-fitted CNG kits and cylinders in locally manufactured vehicles and also imposed curbs on their import.

Import of animals

The ECC approved the lifting of a ban on the import of live animals from countries, which have been declared as having ‘negligible risk’ by the World Animal Health Organisation (OIE), excluding Israel. Pakistan had imposed the ban in 2001 owing to risks from Bovine Spongiform Encephalopathy (BSE), commonly known as ‘mad cow disease’.

In May this year, US Deputy Secretary of State William J Burns requested that Pakistan lift the ban on the import of live animals from the US. Burns made the request during a meeting with Finance Minister Ishaq Dar, held in Islamabad.

However, the ECC retained a ban on the import of feeds containing meat, bone meal and greaves derived from BSE-infected animals. Animals from such herds where there has been no reported case of BSE for the last eleven years and those duly certified by the veterinary authority of the exporting country can be imported, the ECC said.

Export of sugar

The ECC also extended a deadline for the export of 250,000 metric tonnes of sugar till October. The shipment period will be extended from 45 to 90 days for export and the advance deposit will be reduced from 25 per cent to 15 per cent.

The committee approved an average transportation cost of Rs20 per 50kgs of imported urea bag from the National Fertiliser Marketing Limited warehouses to dealers in order to facilitate farmers. This will entail a subsidy of Rs150 million to the government exchequer.

Finance Minister Ishaq Dar told ministries that summaries for the ECC’s consideration must be submitted in advance, allowing stakeholders a chance to thoroughly scrutinise the proposals.

Published in The Express Tribune, July 5^th, 2014.