ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Tuesday allowed to export 1.5 million metric tons (MMT) sugar in view of the availability of surplus sugar.

Taking into account the recommendations of the recent Council of Common Interests (CCI) meeting, the ECC allowed export of 1.5MMT sugar. Prime Minister Shahid Khaqan Abbasi chaired meeting of Economic Coordination Committee (ECC) at Prime Minister’s Office.

The country would have expectedly 8 MMT sugar in the upcoming season as against the expected consumption of 5.100 MMT and hence around 3.00 MMT sugar would be surplus. It was proposed that 1.5 million MTs of sugar may be allowed for export. However, the CCI has rejected a proposal on increase in export rebate from Rs 10.70 per kg to Rs 20 per kg. The government is continuously exporting sugar due to surplus quantity. The ECC had decided in September 2017 to allow export of 500,000 tonnes of sugar with a cash freight support of Rs 10.70 per kg which forms around 25% to 27% of the FOB value of sugar exports.

The ECC also acceded to a proposal for levying of regulatory duty on import of LPG. The step would help in maintaining parity with the locally produced LPG. Ministry of petroleum had moved another summary seeking imposition of Rs4,669 per tonne regulatory duty on imported LPG to “provide a level playing field to both producers and importers effective.” The summary further said that to meet the revenue collection target of Rs 2 billion set out as petroleum levy on LPG for FY2017-18 by Finance Division, this ministry, as mandated by Petroleum Ordinance 1961, was in the process of imposition of levy on locally produced/extracted LPG at the rate of Rs 4669/per MT under the law wef November 1, 2017.

The ECC permitted procurement of goods and services as per the provisions of the Framework Arrangement and Export-Import Bank of Korea Guidelines. In order to discourage fuel adulteration and tax evasion, the ECC allowed addition of fuel marker in Superior Kerosene Oil (SKO).

The ECC also approved determination and notification of UCH-II Gas Price, as agreed under Gas Pricing Agreement (GPA) by Oil & Gas Regulatory Authority under the OGRA Ordinance, 2002. The ECC accorded its approval for making necessary amendments in the ECC approved Supplemental Agreement to Implementation Agreement (SAIA) for CPEC projects. The ECC also allowed disposal of 500,000 tons of surplus wheat of PASSCO through local sale.