Geo436.com blog: Proposal for export of 2m metric tons of wheat deferred

Geo 436 ISLAMABAD: The Economic Coordination Committee of Cabinet (ECC) has deferred the proposal for export of 2 million metric tons of wheat submitted by the Ministry of Commerce.

The ECC also decided to provide a grant of Rs 2400 per acre to the farmers/ landowners upto 12.5 acres of the flood affected areas for the cultivating Rabi crops in the country.

The ECC which met under the Chairmanship of Finance Minister Dr Abdul Hafeez Sheikh here also decided to extend a loan facility at the interest rate of 8 per cent from the banks for the farmers who are the flood affectees and the holders of more than 25 acres of land for the cultivation of Rabi crops in the country.

The term of the scheme would be for four months and start with immediate effect.

Briefing the newsmen about the decisions of the ECC here at the Finance Ministry on Saturday, Secretary Finance Salman Saddiq said that ECC decided that the out of Rs 2400 per acre to the farmers of flood affected areas upto 12.5 acre, half amount will be paid by the federal government while half of the money will be paid by the respective provinces.

“We are transferring the amount on cash basis while its upto the provinces to provide the farmers the incentive in form of cash or inputs”, he remarked.

Salman Sadiq said that ECC also deferred the proposal for export of 2 million metric tons of wheat submitted by the Ministry of Commerce.

He further said that ECC also discussed the support price of wheat and procurement targets for the year 2010-11 submitted by the Ministry of Food and Agriculture and decided to constitute a committee comprising Minister for Petroleum Syed Naveed Qamar, Minister for Food and Agriculture Nazar Muhammad Gondal, Deputy Chairman Planning Commission Dr Nadeem ul Haq, Governor State Bank of Pakistan and Secretary Food and Agriculture.

The Committee on the basis of Agriculture Policy Institute submissions and international prices scenario of the wheat would submit its recommendations within a week in this regard.

The Secretary Finance said that ECC also approved the Ministry of Port and Shipping proposal for the establishment of a Coal, clinker/cement terminal at port Qasim as a cost of US $ 173 million.

He added that the ECC also deferred a proposal of the Ministry of Water and Power for dedicating Kunar-Paskhhi gas supply for power generation and directed both Minister for Petroleum and Minister for Water and Power to come up with their proposal in the next meeting for any decision in this regard.

Salman Sadiq said that the ECC also approved 1100 MW Kohala Hydel Power project to be built with the support of China.

He added that a MoU in this regard has already been signed.

The Secretary Finance said that for ensuring transparency a committee has been set up with Minister for Water and Power, Secretary Economic Affairs Division (EAD) and Secretary Finance in this regard.

Salman Sadiq further said that the ECC also announced incentives, concessions and protection for the development of indigenous coal resources including Thar coal (mining and generation) in the country.

He added that under the incentives 20 percent (Dollar based) was allowed to the firms which achieve Financial close before December 31 2015 for Mining and power projects based on indigenous coal and additional half a percentage of Internal Rate of Return (IRR) which is 20.5 percent IRR for the firms which financial close by or before December 31, 2014.

ECC decided that such firms would have zero percent customs duties on import of coal mining equipments and machinery including vehicle for site use.

He added it also decided the exemption of withholding tax to shareholders on dividends for initial 30 years, exemption of withholding tax on procurement of goods and services during project construction and operations.

He added that ECC also decided exemption of 30 years on other levies including excise duty, federal excise duty, WPPF and WWF and in addition to these incentives, Coal based power projects and coal mining projects in Sindh shall have also same incentives.