The meeting, keeping in view the differential of 10-15 percent in the market and the Utility Store Corporation (USC) prices, ie from rupees six to rupees nine per kilogram, decided to rationalise the price of sugar to be sold through the USC retail outlets by increasing it by rupees seven per kilogram, ie from Rs 38 per kilogram to Rs 45 per kilogram.
The ECC approved the strategy for ensuring regular supply of major as well as minor crops to sustain food security. The main elements of the strategy include timely announcement of support price for wheat and intervention/indicative price for major and minor crops, ensuring timely availability of farm inputs at affordable prices with special emphasis on water conservation and its judicious use, setting area and production targets of major and minor crops in consultation with stakeholders, enhancing farmers access to modern crop varieties and new technologies and promoting adoption of good agricultural practices for production of major and minor crops, improving marketing systems for various agricultural commodities.
In case of shortage of essential food commodities, their supply will be ensured by the public and private sectors through imports and maintenance of buffer stocks. Discussing the subject of disposal of 2008-09 crop of super basmati rice, the ECC gave approval to the following:
-- Measures for disposal of rice lying in Passco go downs. -Export of rice to the Middle East, Iran, Europe or any other market on government-to-government basis.
-- Sales/exports to be done through qualified agents/brokers. Nine hundred-dollar per ton would be the minimum base price for super basmati within five- percent limit of broken rice. The ECC also approved the standardised security agreements for hydropower projects under the 2002 Policy for Power Generation.
The ECC authorised the Board of PPIB to approve any project-specific amendment in the standardised security hydropower agreements required during negotiations provided the government of Pakistan obligations or liabilities are not increased.
The ECC approved the recommendations of the Committee on Revival of the Risalpur Export Processing Zone, which included allowing export of the manufactured goods from the REPZ as trading items to Afghanistan via land route. Revision of lease rates/annual ground rent will be decided by the Export Processing Zone Authority, Board of Directors. Thirty percent export of manufactured goods to the tariff area will be allowed.
In view of the acute financial crunch, experienced by the Pakistan Steel Mills, the ECC approved the following Bailout Package for the PSM to meet its requirements for working capital and implementing its business plan:
-- Term loan facility of rupees eight billion for five years in favour of Pakistan Steel, based on the government of Pakistan guarantee by the consortium of banks, led by the NBP.
-- Running Finance Facility of rupees two billion, renewable on yearly basis, in favour of Pakistan Steel Mills based on the government guarantee by the consortium of banks, led by the National Bank of Pakistan.
Considering the issue of revision of re-lending policy of foreign loans/credits, the ECC approved that the provinces may avail re-lending of the foreign loans on the same terms and conditions on which the loans are signed by the government of Pakistan. In this regard, the provinces would be allowed to issue their own bonds.
Considering the issue of passing on the German grant/soft loan to PPAF for livelihood support and promotion of small community infrastructure project, the ECC approved relaxation of following terms before signing the agreement:
-- Passing on of Euro grants 14,860,399.40 to Project Executing Agency (PPAF) as grant.
-- Passing on Euro 16,701,660.86 loans to Project Executing Agency (PPAF) as a grant.