Provinces asked to remove ban on wheat movement

ISLAMABAD - The Economic Coordination Committee of the Cabinet (ECC) has asked provinces to immediately lift ban on inter-provincial movement of wheat flour in order to ensure smooth supply of the commodity in the deficient provinces like NWFP and Balochistan. Presiding over the ECC meeting here on Tuesday, Prime Minister Syed Yousuf Raza Gilani issued the directives to the provincial governments calling upon them to lift restrictions, imposed on the movement of wheat flour, to stabilise the market, said an official announcement on Tuesday The meeting, however, directed the Interior Ministry to continue with strict measures to control the menace of wheat smuggling and hoarding so that smooth supply of wheat could be ensured and any crisis like situation be averted in the market. "The government will ensure the provision of atta to the people at affordable prices," the meeting asserted. The Ministry of Food, Agriculture and Livestock (MINFAL) briefed the ECC that the federal government had already started supply of wheat to the NWFP province to meet the food shortage of the province. The meeting was told that import of 2.5 million tons of wheat would be completed by November and the first consignment of one million tons will arrive in Pakistan in coming August. The cabinet had recently decided to import 2.5 million tons of wheat to meet the shortfall of one million tons, and to build sufficient food reserves, it was mentioned. The PM asked the Ministry of Commerce to take necessary steps for diversification of exports and respond to the dynamics of the international market in order to enhance country's export. He said the 'trade policy' should be prepared keeping in view these observations. The Commerce Ministry told the meeting that trade officers posted in Pakistan Embassies were doing useful job in boosting Pakistan's exports, and those who failed to deliver could be recalled.   The meeting directed the Commerce Ministry to focus on the countries like Malaysia, China and Sri Lanka and tap their markets, as there was a lot of potential for Pakistani exports in these countries. The Commerce Secretary informed the meeting that the situation in the textile sector will improve during the next year because of the good prospects of access to the European markets. He said that products manufactured at the Reconstruction Opportunities Zone (ROZs) will be exported to the US at zero tariff. Governor State Bank, Dr Shamshad Akhtar apprised the ECC of the country's economic indicators, and stressed for pursuing stringent fiscal and monetary measures to reduce the gap between the balance of payments and revenues. "We have to be realistic and march with confidence on the trajectory of prosperity and development," said the Governor. She called to strike a balance between the exports and the imports. She said that the problems facing the economy had accumulated over the years and these were never addressed in time in the past. The ECC was informed about a slight increase of 0.66 percent in the sensitive price index ending May 31, 2008. Prices of 8 items recorded decrease and those of 115 items remained unchanged.

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