The ECC of the Cabinet met here on Friday under the Chairmanship of the Federal Minister for Finance, Senator Mohammad Ishaq Dar at the Prime Minister’s Office.
The ECC approved Restructuring Plan for the Pakistan Steel Mill (PSM) amounting to Rs.18.5 billion. The plan envisages achieving 77 percent capacity of the PSM till June 2015. Mr. Muhammad Zubair, Chairman Privatization Commission informed the ECC that, at this stage, the PSM is functioning at 3-6% capacity due to shortage of funds and it is not possible for the plant to run for a long period at this capacity. He said that the possibility of finding a strategic partner for PSM also looks remote. He concluded that there is an urgent need to focus on its restructuring in order to get a better price of the public asset. He informed that the Ministry of Industries, management of PSM and the Privatization Commission are on the one page as far as the restructuring plan is concerned.
The Finance Minister said that the CEO of PSM should be confident and assures the forum that the anticipated results will be achieved with the restructuring plan. The management of PSM assured the ECC that with the implementation on the plan, PSM will be able to pay all their liabilities and with operational capacity around 77%, they will earn a monthly profit of Rs.38 million onward from January 2015.
The ECC considered a summary of the Ministry of National Food Security and Research on artificial hike in the prices of potato in the market. The ECC was informed that hoarding and profiteering has led to increase of potato price locally. ECC was informed that the rational price for potato should be in the range of Rs.30 per kg. The Finance Minister on the occasion said that it is the collective responsibility of the Federal and the Provincial Governments to protect consumers and manipulation in prices of essential commodities will not be allowed. He added that three days were given to the hoarders and middlemen to release the supply of potato in the market but it seems that the government will need to take appropriate measures to stabilize the prices.
The ECC on the recommendation of Minister for National Food Security and Research, Mr. Sikandar Hayat Bosan, decided to impose 25% regulatory duty on export of potato with effect from 5th May, 2014. It was further decided that there will be zero duty and levy on import of potato from 5th May till 31st July 2014 and the measure will help in bringing potato prices at rational level in the market before and during the month of Ramadan 2014.
The ECC also approved the summary of Ministry of National Food Security and Research for donation of 26,000 metric tons of wheat to WFP for dislocated population of FATA and KPK. This will be a gift from the Government of Pakistan to the IDPs to be distributed through WFP. The Federal Government will incur Rs.832 million for donation of wheat.
The ECC also approved, in principle, a summary of the Ministry of Industry and Production for allowing Utility Stores Corporation to procure sugar directly from the domestic sugar mills without the involvement of the Trading Corporation of Pakistan. The Ministry of Finance will provide credit line support to the USC. The TCP was directed to maintain their stocks upto 50,000 tons in future and to supply their over and above stocks to the USC from the current inventory of around 200,000 tons.
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