ISLAMABAD-While deferring the proposal of imposing ban on importing CNG kits, the Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a bailout package worth of Rs six billion for Pakistan Steels Mills (PSM) for steering out it of the financial crisis. The Economic Coordination Committee of the Cabinet had met under the Chairmanship of Finance Minister Dr Abdul Hafeez Shaikh. The meeting has approved the summary of the Ministry of Industries for granting bailout package worth of Rs six billion for PSM. The Cabinet Committee of Restructuring (CCoR) has already approved a bank guarantee to ensure working capital for Pakistan Steel Mills (PSM) to bring it out of crisis. Sources told The Nation that ECC has deferred the summary of Petroleum Ministry for imposing ban on the import of CNG cylinder and kits and also stopping the production of CNG fitted cars in the country in order to discourage the usage of enviornment friendly fuel owing to the unavailability of gas. CNG kits would only be installed in new commercial vehicles including public transports, said the summary. Similarly, policy regarding low gas pressure was also deferred for next meeting. According to the official handout issued by Finance Ministry, ECC deliberated on the recommendations of Ministry of Industries regarding purchase of 0.2 million tonnes of sugar from local market in order to continue the supply of sugar to utility stores in coming months and also to store sugar as a strategic reserve. ECC agreed to purchase sugar but with a strict provision that this sugar will not be purchased at the cost higher than the prevailing market value. In this regard, a sub-committee comprising Finance, Industries and Commerce Secretaries, was formed which will formulate any mechanism including the negotiations with the sugar mill owners to purchase sugar below the market prices. The statement further stated: 'ECC deliberated on the summary proposed by Ministry of Petroleum and Natural Resources. The summary proposes of laying of 50 km new pipeline from Latif field to Sawan plant where surplus capacity is available that can be used for processing Latif Gas. The summary states that if new avenues to process raw gas from Latif field are not found out then the gas network will lose additional gas availability to the tune of 50-70 MMCFD. ECC was informed that the other companies (Kandanwari Joint Venture) has refused to work on it due to low earning, so SSNGPL and SSGPL be allowed to accept Latif gas into system by laying 50 km pipeline of cost Rs 2.308 billion with certain modalities. ECC approved in principle the said proposal to go ahead and formed a sub- committee comprising Deputy Chairman Planning Commission and representatives from Finance Division, Petroleum Division and Oil and Gas Regulatory Authority each. This sub-committee will meet again shortly and put forward their recommendation to ECC regarding the detailed enabling steps of said proposal and its provisions and adjustments with the petroleum policy. Earlier briefing the Committee, Finance Secretary, Dr Waqar Masood Khan informed that that Large Scale Manufacturing has shown a great performance in this year but our export may come under pressure in the coming months because of the current economic crisis in Europe and US. Foreign Exchange Reserves stands at 16.90 billion dollars on November 28TH, 2011. He also pointed that the current decreasing Foreign Investment can be matter of concern, but this decrease is mainly occurring in portfolio investment. While discussing on this issue, ECC directed the Board of Investment and State Bank of Pakistan to come up a brief presentation on Foreign Investment in next meeting, which will tell the ECC about detailed process of calculating investment in the country, concerns of different companies for non-investment, reasons of low investment and their subsequent remedies for revival of investment. He informed the meeting that inflation is decreasing with Overall Consumer Price Index (CPI) in October 2011 is 11 per cent as compared to previous years value of 15.3 per cent in same month. Inflation on food items has been decreased from 21 per cent to 11.7 per cent and non-food items from 11.9 per cent to 10.5 per cent in this year. He informed that there is sudden downfall in Sensitive Price Index (SPI) with a latest value of 5.70 per cent. He told that prices of the most of food items have been decreased except rice. ECC also reviewed the status of implementation of the decision taken in the meeting of ECC held on November 11th, 2011. In this regard, different officials updated ECC about their progress. Secretary Finance, Petroleum and Natural Resource, Water & Power, Industries, Commerce, Statistic, Deputy Chairman Planning Commission, Governor SBP, Chairman Trading Cooperation of Pakistan, Chairman Board of Investment, Managing Director Utility Store and many others high officials were present in the meeting.