20000304

ECC allows

export of

100,000 tonnes urea

RECORDER REPORT

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has allowed export of 100,000 tonnes of Urea fertilizer to fulfil the demand of the manufacturers.

The ECC met here with Finance Minister Shaukat Aziz in the chair here on Thursday evening.

The decision was taken because the country has present surplus quantity of about 0.5 million tonnes of urea.

Sources said the local production in 1999 was 17.8 percent higher as compared to 1998 as it reached 3.96 million tonnes from 3.36 million tonnes.

The international prices of urea are much higher than the local prices and the decision would make the manufacturers more profitable, the sources said, adding that the export of 100,000 tonnes would not disturb the stocks position and not create any shortage in the country.

The ECC reviewed the drug price policy. The issue was looked at from the viewpoint of low income consumers, domestic produces, foreign investors as well as the traders. The committee agreed to make recommendations on these issues to the Cabinet for its consideration.

Sources close to the Finance Ministry said that the ECC had in principle agreed to increase the prices of life saving drugs. However, he said the percentage of increase in the prices would be finalised by the Cabinet.

The finance minister would brief the Cabinet in this regard and the matter is likely to take up in the next meeting of the Cabinet.

Ministry of Health has put three proposals regarding increase in the prices to the finance minister for submission to the Cabinet, the sources added.

The ECC reviewed the report on consignment lying at KPT and Port Qasim. Some of these have lying unclaimed for over five years. These consignments belong to public and private sector importers.

The committee viewed these with concern and felt that the issue would need to be settled on priority basis. The committee appointed a senior official of the Communication Ministry to deal with the issue so as to make these dead assets productive.

The ECC would be requesting the officials to suggest measures to avoid congestion in future at the ports.

The committee reviewed the price and availability of essential items and noted that there was sufficient availability of essential items in the country and that the kitchen items index showed stability.

The annualised change in the kitchen items index on a week-to-week basis worked out to be minus 1.20 percent for the week ending on February 24, 2000.

The committee was presented a report on sugar production and was informed that the total production of sugar up to February this year was approximately 2 million tonnes.

The committee decided to keep the production and prices of sugar under review. It directed all the provincial governments to check the positions of sugar mills and ensure adequate availability in the markets.