Import of 0.4 million tons of urea allowed by ECC

ISLAMABAD, The Economic Co-ordination Committee (ECC) of the Cabinet on Tuesday gave approval for import of 400,000 tons urea through private sector, and abolished 35 percent regulatory duty on export of wheat products. The meeting, chaired by Minister for Petroleum and Privatisation Naveed Qamar, allowed import of urea, with subsidy of Rs 750 per 50 kg bag, to private importers on first-come first-serve basis. The subsidy may be paid at the time of release of consignments on submission of Bill of Lading to State Bank of Pakistan. The bank will monitor and withhold the issuance of Letters of Credit (LCs) on the achievement of set target ie 400,000 tons. For providing level playing field to local exporters, the ECC has decided to withdraw 35 percent regulatory duty on export of wheat products. The decision was taken in the light of the bumper harvest this year due to which Pakistan has not only adequate wheat stock for its domestic requirements but is in a position to export the surplus. The meeting was informed that the stock of wheat as on September 7, 2009 amounted to 9.216 million tons as against 3.458 million tons in the same period of last year, showing increase in stock of about 5.758 million tons. There was improvement in trade deficit by 38.5 percent to $2.19 billion in July-August 2009-10 from $3.56 billion in the same period of last year. Workers remittances amounted to $1,525.4 million in July-August 2009-10 against $1,219.5 million, showing an increase of 25.1 percent over the same period of last year. Foreign exchange reserves stood at $14.4 billion as on September 10, 2009--up from $6.4 billion on November 25, 2008. The ECC also approved conversion of $13 million credit into 'grant' for Tajikistan. The ECC expressed hope that this gesture would create goodwill between the two countries and improve economic and political ties. The meeting approved additional 20 MMCFD low Btu gas from Kandra field, to be upgraded by the producer to 300 Btu/Scf, to be allocated to SSGC which, along with additional 5 MMCFD pipeline quality gas from SSGC's system placed at the disposal of PPIB for setting up a new IPP of 120 MW subject to following conditions: Additional 5 MMCFD pipeline quality gas from SSGC's system would be available for 15 years starting from January 2012. Signing of Gas Sales Agreement between project sponsors and SSGC within six months of gas allocation or any other time specified by the Ministry of Petroleum & Natural Resources failing which the allocation shall become "null and void". Total cost of the pipeline system and measuring station will be borne by the project sponsors. The gas allocation/supply would be under Natural Gas Allocation and Management Policy, 2005. Therefore, the project sponsors must make combined cycle arrangements. During the meeting Ministry of Commerce made a presentation on the project 'Reconstruction Opportunity Zones' (ROZs) whereas the Competition Commission of Pakistan (CCP) made a presentation on Cartelisation by cement, sugar and car manufacturers. Link...