Staff Report
ISLAMABAD:
Federal cabinet’s economic coordination committee (ECC) on Thursday found unable to take decision regarding imposition of ban on export of tomatoes and onions for the next three months and constituted a sub-committee to take a decision in this regard.
Federal Minister for Finance and Revenue, Shaukat Tarin, presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Thursday. And, Federal Minister for Planning Asad Umar, Federal Minister for Industries and Production Khusro Bakhtiar, Minister of State for Information Farrukh Habib, Advisor to PM on Commerce Abdul Razak Dawood, Governor SBP Dr. Reza Baqir, Secretary Power Division, Secretary M/o NFS&R, Secretary Commerce, Chairman FBR, Chairman SECP, MD USC and other senior officers participated in the meeting.
According to sources, the Ministry of Commerce tabled a summary titled as ‘Ban on Export of Tomatoes and Onions” during a meeting of the ECC held on Thursday. And, the ECC after detailed discussion, constituted a sub-committee headed by the Finance Minister to consider monthly projections regarding export of perishable commodities on basis of estimated production, consumption and surplus to be presented by the M/o Commerce. It was also decided that decision to export above mentioned vegetables will be taken by the sub-committee, said Finance Division in a statement issued to press.
The sub-committee constituted by the ECC to take decision regarding ban on export of tomatoes and onions will be notified soon, said sources.
As per details, National Price Monitoring Committee (NPMC) held on 22nd September, 2021 had earlier decided that the commerce ministry with the consultation of ministry of national food securities & research (MNFSR) will impose ban on export of tomatoes and onions for the next three months.
It is relevant to note that the data for the current fiscal year from 01-07-2021 to 26-09-2021 has shown that exports of onions has increased by 144 percent to USD 21.55 million from USD 8.82 million during the corresponding period of last year. Similarly, the export of tomatoes has been USD 24,880 during the current fiscal year from 01-07-2021 to 26-09-2021 compared to no exports during the corresponding period of last year.
The sources said that MNFSR has informed ECC that the restriction/imposition of ban on onions and tomatoes may hamper the export in future and Pakistan may lose high value markets due to non-consistent supply orders to the importers and a negative impact may go to the international community. At the same time, unrest among farmers community may prevail and next year, farmers may not prefer to g by the row onions and tomatoes. However, in order to maintain smooth supply and prices in domestic market and as directed by NPMC, MNFSR has recommended imposing ban on the export of onions and tomatoes from 10th October, 2021 upto 10th January, 2022 in order to maintain smooth supply and prices in domestic market. And, the Ministry of Commerce has supported the observation of MNFSR that ban on export of these items is likely to adversely affect the image of the country as a reliable supplier of onions in particular in the international market, said sources.
During the course of the meeting, Finance Ministry tabled the summary regarding incentives /rewards to overseas Pakistanis remitters under National Remittance Loyalty Program (NRLP) which has been branded as Sohni Dharti Remittance Program. The remitters will be awarded points against remittances sent by them to Pakistan through legal channels. After due deliberations, the ECC recommended that the option of cash redemption may only be offered to those overseas Pakistani remitters who return to Pakistan permanently. However, Overseas Pakistanis shall be qualified to avail services (such as PIA ticket, Mobile phone duty payment etc) against redemption of the accumulated points awarded under NRLP.
Ministry of National Food Security and Research (NFS&R) presented a summary to update the forum about the cotton seed prices during the months of August and September 2021. The domestic prices remained above the threshold set, barring for couple of days due to rains. The ECC expressed satisfaction that farmers are getting their due prices.
Ministry of National Food Security and Research (NFS&R) tabled a summary regarding allocation/release of 280,000 MT of wheat to the Utility Stores Cooperation (USC) till December 2021. A quantity of 90,000 MT has already been provided as an interim arrangement whereas the remaining 190,000 MT will be provided from PASSCO’s stocks (local or imported as per stock availability with PASSCO). The ECC approved the allocation/release of remaining 190,000 MT to USC to ensure smooth supply of wheat through chain of USCs across the country.
On a summary moved by the Ministry for National Food Security and Research, the ECC recommended the allocation of total quantity of 300,000 MT of wheat to the AJ&K Government out of PASSCO stock during the current financial year. This includes 140,000 MT of wheat which has already been released to AJ&K by the Ministry of NFS&R as an interim arrangement. The ECC directed the referring division to provide wheat to AJ&K with a best possible combination of indigenous and imported wheat.
The ECC considered and approved the summary tabled by the Ministry of Overseas Pakistanis and HRD regarding Annual Budget for the FY2021-22 & revised Budget for the FY 2019-20 of the Employees Old-age Benefits Institution (EOBI).
The ECC considered and approved a Technical Supplementary Grant (TSG) amounting to Rs. 6.4 billion in favour of Cabinet Division for Special Technology Zones Authority (STZA) during the current FY-2021-22.
