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ECC reviews essentials

prices, availaibality

ISLAMABAD: The Economic Coordination Committee of the Cabinet, which met here on Monday with Prime Minister Benazir Bhutto in the chair, reviewed the prices and availability of essential commodities in the country and noted with satisfaction that food prices have shown a declining trend.

The Committee was informed that prices of all types of pulses, gram, onion and tomatoes in particular have come down in the open market. Price index of 19 kitchen items had registered a decrease of 0.5 percent as compared to the previous week and the trend was likely to continue in the coming weeks.

The meeting was further informed that Government borrowings for budget support which had declined by Rs. 1.8 billion during the preceding fortnight have shown a substantial contraction of Rs. 31.4 billion to Rs. 33.1 billion. Government borrowings for commodity operations have also declined further by Rs. 0.7 billion to Rs. 3.5 billion. Credit to private sector which had declined by Rs. 2.4 billion during the preceding fortnight showed a further contraction of about Rs. 1.00 billion. The Committee emphasized the need to continue to control monetary expansion so that inflationary trend could be further checked.

The ECC noted with satisfaction that there has been monumental increase in the acreage and production of major oilseed crops. Sunflower acreage has increased from 100,000 acres to 250,000 acres whereas the area under Canola Crop has increased from 7,000 to 100,000 acres of land.

The Committee noted with concern reports of shortage of atta in NWFP and decided to request the Punjab Government to provide 30,000 tones of atta to NWFP every months.

The ECC reviewed the overall progress on various energy projects in the country, particularly the Ghazi Brotha, Neelam-Jhelum Kohala power complex, Neelam Valley Hydro- Electric project and Upgrdation of 220 KV Grid Station at Muzaffargarh to 500 KV. The committee also reviewed progress on the exploration of oil and gas discoveries and development of new fields.

The meeting was informed that private power projects of a net capacity of 1663 MW have already declared financial close while projects with a new capacity of another 1856 MW have submitted financial close documents which are currently under formal review. A few more projects with a net capacity of 584 MW are at an advanced stage of financial packaging.

The Committee expressed satisfaction at the present status of private power projects and hoped that the expected thermal power generation from these projects would meet the requirements of the 8th five year plan. The committee, however, was of the view that henceforth more emphasis should be laid on the generation of hydel power for which feasibility studies may be carried out for small and medium size projects. The Committee also directed that measures be adopted to ensure employment of local labour on such development projects with a view to providing immediate and direct benefit to the people living in their vicinity.-APP