ISLAMABAD
The Economic Coordination Committee (ECC) has approved the import of sugar and wheat, while it deferred the approval of textile policy till next meeting.
Minister for Finance and Revenue Dr Abdul Hafeez Shaikh, chaired the ECC meeting.
The Ministry of Industries and Production presented a summary before the ECC for import of sugar to reduce upward pressure on prices of sugar and to buffer up carry over stocks before the arrival of the fresh crop. The ECC approved reduction of Withholding Income Tax on commercial import of white sugar and raw sugar from 5.5% to 0.25% and removal of Value Added Sales Tax on import of white sugar. The reduction in taxes will incentivize the sugar mills for import of 300,000 MT Raw Sugar up to 30th June 2021.
The ECC further directed Trading Corporation of Pakistan (TCP) to import white sugar up to 500,000 MT if and when needed during the current season.
A draft Textiles and Apparel Policy, 2020-25 by the Ministry of Commerce was postponed to the next ECC for a detailed discussion.
Secretary, M/o Communication presented a detailed National Freight and Logistics Policy (NFLP) framework before ECC. Honourable members of the ECC appreciated the efforts made by the Ministry in drawing up a comprehensive draft policy and directed M/o Communications to identify and segregate actionable items which fall under its domain and place before the next ECC for final approval.
The proposals pertaining to other ministries and provinces would be considered separately under some institutional arrangement at an appropriate forum.
The ECC also approved a draft policy on equity investment abroad by residents / firms, which caters to the needs of the business community and aims to improve the ease of doing business, promote exports, facilitate resident companies in raising capital from abroad. It will also fulfil legitimate investment needs of the individuals.
The Ministry of National Food Security and Research presented a summary to authorize TCP to make immediate arrangements for import of 300,000 MT of wheat through a tendering process as ratified by the cabinet and nominate PASSCO as a recipient agency for the imported wheat to replenish its stock as needed. The ECC accorded approval as requested by the Ministry.
The ECC also approved another summary by the Ministry of National Food Security and Research regarding allocation of 60,000 MT of wheat for Food Department Balochistan from PASSCO’s existing stock at subsidised rate as per previous practice.
The ECC also decided that gas rate of PKR 772/MMBTU will be applicable to Agritech and Fatima Fertilizer post November 2020 till January 2021 as requested by the Ministry of Industries and Production.
The ECC accorded approval for the exemption of Sales Tax @17% and additional sales tax @3% on the import of 52 fire fighting vehicles by Sindh Infrastructure Development Company Limited (SIDCL).
The Ministry of Communications updated ECC regarding progress made in conversion of National Highway Authority (NHA) loans into government loans as per the last ECC held on 02 December 2020. The NHA requested for a time period of 09 months to prepare a commercially viable business plan in consultation with other Ministries. NHA’s debt restructuring would be linked with the outcome of the said business plan.
The ECC also accorded approval of the proposal that outstanding mark-up accrued till date on all CDL/FRL on NHA would be capitalised as on 30 June 2020. There will be a moratorium on further accrual of mark-up till the finalization of the business plan.
Ministry of Religions Affairs and Interfaith Harmony presented a summary for scaling up of ‘Road to Makkah Pilot Project’ from Islamabad airport to two more cities i.e. Karachi and Lahore to facilitate Hujjaj for performing Hajj under the government scheme. One of the pre-conditions for scaling up of Road to Makkah Project was grant of special exemption on the import of technical equipment in Pakistan by the Kingdom of Saudi Arabia (KSA). The ECC decided that FBR will hold a separate consultation with the Ministry of Religions Affairs and Interfaith Harmony to work out details and matters would be placed before the next ECC for approval.
The Aviation Division presented a summary before ECC to reconstitute a high powered committee headed by the deputy chairman Planning Commission including secretary finance, secretary aviation and secretary law to deliberate on financial challenges faced by the Roosevelt Hotel, New York, USA. The committee approved the above request.
