ISLAMABAD: The Economic Coordination Committee of the cabinet imposed a 25 percent regulatory duty on import of potatoes from India, official sources told Daily Times on Tuesday.
The ECC said the move would provide an incentive to local farmers for increased crop yield to cater to domestic needs. It said Pakistan was self-sufficient in the produce, as it was producing more than 2.5 million tonnes of potato on 1.3 million hectares of land.
The cabinet committee met under the chairmanship of Finance Adviser Shaukat Tareen to consider a summary of fresh proposals forwarded by the Economic Affairs Division (EAD).
Forex reserves: While reviewing the overall price situation in the country, the ECC noted the Consumer Price Index-based inflation had registered a deceleration of 1.4 percent during December 2008 compared to December 2007. It noted the foreign exchange reserves during January 2009 stood at $10 billion, which included the impact of the International Monetary Fund’s first tranche of disbursement and other inflows.
The EAD summary outlined proposals for re-lending foreign loans/credits to provincial governments, public sector corporations, bodies and development financial institutions (DFIs).
The sources said the government's proposed re-lending of foreign loans and credits policy aimed at reducing interest rates and shifting the risk of exchange rate fluctuations - exchange risk coverage (ERC) - to the institutions offered the loans.
The loans would cost local institutions 1 percent less than their original cost being bore by the government.
The ECC directed the EAD to follow transparent terms and conditions that have an ERC subject to the provincial governments' concurrence and charge them nominal administrative rates.
In the past, foreign loans arranged on an interest rate of six percent were re-lent to provinces on 12 percent and above, the sources said.
However, under the proposed policy, the provinces would be servicing foreign loans and credits according to the current exchange rate of the respective currency of foreign loan, the sources explained.
Exemption: The ECC approved a Ministry of Investment proposal that sought exemption of regulatory duty on import of capital goods required for business of retail chain stores. An exemption of duties between 15 and 50 percent was allowed.
ECC also considered a summary by the Ministry of Industries and Production for supply of magnetite concentrate by M/s MRDL Saindak to Pakistan Steel Mills and approved the proposal.
A summary for permitting M/s Trans Polymers Ltd’s proposal for setting up a ª400 million polyethylene plant at Port Qasim was also considered. The ECC allowed the issue of a revised letter of intent from the ministry for setting up the said plant, stipulating a one-year timeframe, the sources said.
Source : Daily Times