ISLAMABAD - The Economic Coordination Committee of the Cabinet on Tuesday gave approval to export 0.3 million tons of sugar, in addition to the export quantity already approved.

The ECC meeting, which was chaired by Finance Minister Ishaq Dar, has taken the decision keeping in view the recommendations of the Inter Ministerial Committee, constituted by the Prime Minister, and the Sugar Advisory Board. The export quota would be approved and monitored by the State Bank of Pakistan (SBP) on first come first serve basis.

In June 2017, an inter-ministerial committee headed by Commerce Minister Khurram Dastgir Khan had recommended the ECC to allow further 0.6 million tons exports without giving any subsidy to the exporters. In view of abundant surplus sugar stocks available in the country, the committee recommended to the ECC an export of 0.6 MMT of sugar, in addition to the 0.425 MMT already allowed for export, subject to the condition that the price stability in the domestic market is maintained. In case of any abnormal increase in the domestic price of sugar, the committee would recommend to the ECC the stoppage of further exports. Once 0.45 MMT out of the allowed quantity of 0.6 MMT is exported, the inter-ministerial committee will meet again to review the stock/export situation and recommend enhancement of export quantities, if deemed appropriate.

However, the ECC has approved to export only 0.3 million tons sugar. It is worth mentioning here that the ECC had allowed to exports 0.25 million tons of sugar in December 2016. Later, the ECC allowed an additional export of 0.2 million tons of sugar up to March 31, 2017.

Meanwhile, the ECC also approved a proposal of the Ministry of Industries and Production to grant exemption from value added tax as required under a provision of a proposed agreement between the Government of Pakistan and the Government of Belarus on Industrial, Scientific and Technical Cooperation. Once the agreement is signed, both governments will mutually exempt value added tax when importing goods supplied on cooperation base, as well as goods supplied under grant-in-aid.