The Economic Co-ordination Committee (ECC) of the Cabinet on Tuesday constituted a powerful ministerial level committee to decide in three days how much sugar to be imported for Ramazan and rest of the season. Briefing the media about the decisions taken in the ECC meeting, Secretary Finance Salman Siddique said the provinces have agreed in the meeting on taking administrative measures, in case of hoarding, to ensure availability of the commodity in the market.

He said the meeting also identified the people responsible for the delay in import of sugar and a report in this regard would be submitted to the Prime Minister. He, however, did not disclose their names. Giving details, he said the ECC also approved limited payment model tariff, already approved by National Electric Power Regulatory Authority (Nepra), for purchase of power from power projects yet to start commercial operation. The tariff approved will include fuel cost, variable and fixed O&M cost, Return on Equity (RoE) component to be determined by the Nepra, he added.

The ECC approved Rs 4.1395 per kw tariff for gas based open cycle projects and Rs 3.107 per kw for combined cycle projects. The tariff for RFO based open cycle projects has been fixed at Rs 11.2461 per kw and combined cycle Rs 10.4764 per kw. Salman said though current stock of 1.2 million tons of sugar would be sufficient for next three months, the government needs to have more stock to ensure adequate supply of commodity in the market.

He said the available stock till now with the Trading Corporation of Pakistan is 1,48,000 tons and with the private sector is 1,053,000 tons. This included 706,000 tons with Punjab, 297,000 with Sindh and 49,700 with Khyber Pakhtoonkhawa province.

The secretary said the TCP was required to import 1.2 million tons sugar by June 2010, but it imported only 264,000 tons till now of which it had 148,000 tons whereas the rest was supplied to the Utility Stores Corporation. He said that 68,000 tons sugar is expected to reach Karachi before end of July while another shipment of 108,667 tons is due in August 2010. Salman said the committee constituted by the ECC would decide as to how much sugar will be imported.

Replying questions, he said this is up to the government to decide about the importers as well as mechanism for speedy import of the commodity. The ECC also decided the refund claim procedure of 1998 with respect to recognised manufactures of agriculture tractors would be followed.

He said the meeting also decided to reduce import duty on Purified Terephthalic Acid (PTA) from 7.5 percent to 3 percent while duty on PSF was increased from 4.5 percent to 6 percent and polyester yarn from 9 percent to 10 percent. The duty on blended yarn fabric was increased from 9 percent to 10 percent to protect the local industry. A committee was constituted to take decision as to whether this tariff would be implemented by Federal Board of Revenue or the Textile Ministry, he added.