ECC increases ghee, sugar, flour’s prices at Utility Stores

ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet on Friday has increased the prices of basic food commodities including ghee, sugar and flour at Utility Stores Corporation. 

Ministry of Industries and Production Secretary presented a summary regarding extension of the Prime Minister’s Relief Package-2020 providing subsidies on five essential commodities from 15th July 2021 to 30th September 2021 till the Enterprise Resource Planning (ERP) system becomes fully operational. The ECC has approved an increase of Rs150 per 20kg bag of flour, Rs17 per kg of sugar and Rs90 per kg ghee. Federal Minister for Finance and Revenue,   Shaukat Fayyaz Ahmed Tarin, chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet held at the Finance Division. 

The ECC also approved the revision in prices of three essential commodities namely flour (20 kg bag) to Rs 950, ghee (per kg) to Rs 260 and sugar (per kg) to Rs 85 respectively, owing to an increasing gap between the subsidised prices offered by USC and the prevailing market prices. The ECC approved a summary tabled by the Power Division regarding non-cash settlement for Power Sector re-lent loans against subsidies payable by government of Pakistan equal to Rs116 billion. “ECC has today approved the financial setoff mechanism for government owned IPPs. This will lead to a reduction of Rs 116 billion in the circular debt stock,” said federal minister for Energy Hammad Azhar on twitter. The government’s entities included Wapda, Pakistan Atomic Energy Commission, NTDC and Neelum Jehlum. 

The ECC considered and approved a summary, presented by the M/o Commerce, regarding the elimination of documents attestation fee for goods imported into Pakistan from Kenya as this Non-Tariff Measure (NTM) increases cost of business and transaction time. The ECC approved “Kamyab Pakistan Programme”. A flagship programme which shall extend micro-loans to entrepreneurs and farmers under “Kamyab Karobar” and “Kamyab Kisan” schemes respectively. The Kamyab Pakistan Programme is aimed at extending loans to 04 million households at the lowest strata, as registered with the National Socio Economic Registry (NSER) of Ehsaas. Loans worth Rs0.5 million, Rs0.150 million and Rs0.2 million through Micro-Finance Providers for Kamyab Karobar and Kamyab Kisan at 0 per cent markup will be provided. The ECC commended all concerned for working out such a detailed programme aimed at “bottom-up approach” for reducing poverty as envisaged by the prime minister. The finance minister stated that the consultative process was followed in working out modalities of the Kamyab Pakistan Programme ensuring that all relevant stakeholders are on board and micro-loans shall be disbursed as per the given criteria. 

The ECC also considered and approved the Draft Policy Directives related to Auction of Next Generation Mobile Services (NGMS) in Azad Jammu Kashmir (AJK). This is the first time that the NGMS will be auctioned in AJK. Ministry of Maritime Affairs presented a summary regarding award of Engineering Consultancy Service contract for up-gradation of Port Qasim Authority (PQA) amounting to Rs86.6 million. The ECC approved the execution of the project. 

ECC allowed Post Qasim Authority, Karachi Port Trust and Gwadar Port Authority Boards to transfer their Marine assets to the Pakistan Marine and Shipping Services Company Private Limited.  M/o NFSR presented a summary regarding procurement of 200,000 cotton bales by TCP. The ECC also approved formation of Cotton Price Review Committee (CPRC) with a mandate to review market price and propose intervention at fortnightly basis. 

The ECC also approved a summary by the M/o Industries and Production for importing 200,000 metric tonnes of sugar to build strategic reserves and minimise the role of speculative elements in the domestic market. ECC approved the amendment in its earlier decision dated 19-02-2021 regarding the prime minister’s fiscal package for agriculture in the wake of Covid-19 Kharif”. 

Federal Minister for National Food Security and Research Fakhar Imam, Federal Minister for Energy Hammad Azhar, SAPM on Finance and Revenue Dr Waqar Masood, SAPM on Power and Petroleum Tabish Gauhar, SAPM on Youth Affairs Usman Dar, Secretary Finance Division, Secretary Communication, Secretary M/o Industries and Production, Governor SBP, Chairman PTA and other senior officers participated in the meeting.

Article source: https://nation.com.pk/17-Jul-2021/ecc-increases-ghee-sugar-flour-s-prices-at-utility-stores