ISLAMABAD – Rejecting a CNG pricing method put up by the Ministry of Petroleum and Natural Resources, the Cabinet’s Economic Coordination Committee on Tuesday formed yet another sub-committee to draw up a practicable gas pricing formula taking input from all the stakeholders. The body would turn up with its report in the next ECC meeting for final approval. The council discussed in detail the guidelines for the CNG sector submitted by the petroleum ministry, and observed that it was an important issue of public interest and there was a lack of unanimity among the stakeholders to agree on a pricing formula acceptable to all. When the petroleum ministry came up with its summary on compressed natural gas pricing method in ECC’s Tuesday meeting, Law Minister Farooq H Naek, while objecting to it, observed that it was not competent to devise a pricing method and that the matter was in legal jurisdiction of the Oil & Gas Regulatory Authority. The ECC, which met under the chair of Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh, took up the various items of national importance on its agenda. In its November 22 meeting, the ECC tasked a sub-committee, comprising the ministers for law and justice, petroleum, and science and technology, with developing a practicable mechanism for gas pricing, but despite the passage of nearly a month it could not give a final shape to its report. The newly-formed committee would draw the law minister as its chairman and the petroleum minister, OGRA chairman and Cabinet Division secretary as members to formulate guidelines to determine a gas pricing formula in consultation with all the stakeholders. Also, the ECC gave in-principle approval to allocation of natural gas to fertilizer plants from new dedicated sources on a long term basis, and formed a committee of the Petroleum and Natural Resources, and Water and Power secretaries to present a detailed report on pricing mechanism to determine how natural gas from newly-discovered sources of gas could be developed and dedicated to the power and fertilizer sectors. This decision would help develop newly-explored sources of gas and reduce pressure on the existing transmission lines. Earlier, the petroleum ministry, while presenting a summary, informed the ECC that the fertilizer industry was located in close proximity of two gas fields, Mari and Reti Maru, from where supply of gas could be commenced in a short period of time. It was further told that the industry could develop the two gas fields and lay its own pipelines for supply of natural gas at an agreed pricing mechanism. In another important decision, the council, after thorough deliberations, accorded an approval to a Trading Corporation of Pakistan summary for disposing of 700 metric tonnes of imported sugar in an appropriate and transparent manner. Reuters adds: The government has allowed another 500,000 tonnes of sugar exports, the government said, bringing the total to 1.2 million so far this year, as it seeks to generate foreign exchange for state coffers and revenue for cash-strapped mills.Pakistan returned to the export market earlier this year for the first time since 2009 and is becoming a significant exporter in Asia after Thailand. Its mills often sell abroad at a discount, which can exert downward pressure on global prices.The latest tranche of exports has no quantitative restrictions on individual mills, but exporters need to ship quantities within 90 days after registering for exports, a government statement said on Tuesday.“For the government and for mills, allowing exports was necessary. The government needs foreign exchange; mills need cash to pay farmers,” said Muhammad Najib Balagamwala, chairman of Karachi-based SeaTrade group.He said the fact there is no individual quota for mills would speed up exports.“Currently export deals are getting done at $508 to 530 (per tonne). Saudi Arabia, Sudan, East African countries and Afghanistan are buying sugar,” Balagamwala said.March white sugar on Liffe was down 0.25 percent at $519.50 per tonne on Tuesday.“Local prices are weak. To make money mills can offer a discount,” an exporter based in Karachi said.Pakistan is likely to produce 5 million tonnes of sugar in the October 2012 to end-September 2013 season, against local demand of around 4.3 million tonnes.The total of sugar available globally for export is expected to be 53.5 million tonnes in 2012/13, according to the International Sugar Organization’s latest quarterly report.