The Economic Coordination Committee (ECC) of the Cabinet has decided that the federal share of cash support on export of sugar will be allowed only to those sugar mills which purchase sugarcane at minimum price of Rs 180 per 40 kg from the farmers.
Presided over by the Finance Minister, Senator Ishaq Dar, the committee emphasised that the millers who do not pay the full price to farmers should not benefit from the government support for exports. Secretary Finance, Dr Waqar Masood, presented to the committee a review of Key Economic Indicators (KEI).
It was informed that the positive trends in the economic indicators have continued during the last quarter. During the last six months inflation remained at 2.08% as compared to 6.08% during the same period of last year.
Large scale manufacturing sector registered a growth of 4.2% in July October 2015-16 as compared to 2.5% in the same period last year. As a result of decline in imports the trade deficit during July-December 2015-16 stood at $11.9 billion compared to $12.1 billion in the corresponding period last year.
Workers” remittances received during July-December 2015-16 amounted to $9,735 million against $9,162 million last year, showing an increase of 6.3%. Foreign Exchange reserves crossed an all-time high of $21 billion in December 2015.
FBR tax collection during July-December 2015-16 increased to Rs 1385.2 billion as compared to Rs 1171.9 billion in the same period of 2014-15 thus registering an increase of 18.2%. Net inflow of foreign investment during July-November 2015-16 was recorded at $824.9 million, the ECC was informed.
On another proposal from the Ministry of National Food Security, the Committee also approved the export of surplus wheat by the provinces of Sindh and Punjab to the tune of 200,000 tons and 400,000 tons, respectively.
Considering the low prices of commodity in the international market, the Committee also decided that a subsidy will be provided to exporters on the same lines as under the previous scheme which expired in September 2015. The new scheme will be implemented with immediate effect and will continue till 15 March, 2016.
Source: Business Recorder