Import of 2.5m tonnes of wheat will be completed by November

ISLAMABAD — The Economic Coordination Committee (ECC) of the Cabinet was informed here yesterday that the import of 2.5 million tonnes of wheat would be completed by November and the first consignment of 1 million tonnes will arrive Pakistan in August this year to remove the shortage of the commodity.
The ECC, which was presided over by Prime Minister Syed Yousuf Raza Gilani, was also told that the import 2.5 million tonnes of wheat to make up the shortfall of 1 million tonnes and rest of the quantity of wheat will be kept for building up sufficient food reserves in the country. The meeting also directed the provincial government to lift immediately the ban on inter-provincial movement of wheat flour to improve its supply to food deficient areas.
At the same time the ECC directed the interior ministry to take more stringent measures to check smuggling and hoarding of wheat to keep its supply steady. It also stressed that people should get at "affordable prices." Official sources said that the meeting was informed that the government has completed its target of purchasing 5 million tonnes of wheat and now have its sufficient stocks to meet any urgency. It was then decided that in the first phase, the inter-provincial restriction on the movement of atta must be lifted.
A concerned official when approached explained that since atta was a perishable item and could not be hoarded for more than 8 to 10 days, its smuggling to Afghanistan and the central Asian States was not all that easy. "We don't see its (atta) shortage anymore and that is why the prime minister directed to lift ban on its inter-provincial movement," he said. Sources said that the meeting also took serious notice of growing energy crisis, with prime minister asking the concerned officials to early firm up short and long term plans particularly to end what he termed the menace of load-shedding which was causing huge problems to the people.
The issue could not be thoroughly debated as the ministers for finance and water & power left the P.M House in the middle of ECC meeting to discuss other important issues with PPP Co-chairperson Asif Ali Zardari at his Islamabad's residence. Sources said that the prime minister asked the officials of the cabinet division to keep the energy problem as an important agenda item for discussion at the federal cabinet meeting on Wednesday.
The prime minister, sources said, also expressed his serious concern over the increasing price hike especially that of food items and asked the economic ministries to look into the issue by ensuring better supply demand situation and check undue profiteering. According to an official announcement, the ministry of food and Agriculture informed 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 prime minister also directed to the ministry of commerce to diversify exports and respond to the dynamics of the international market aimed at to export Pakistani products. He said that the trade policy should be prepared keeping in view these observations. The ministry of commerce apprised the ECC meeting that Trade Officers posted in Pakistan Embassies were doing useful work in increasing the trade between Pakistan and the countries of their accreditation. Those who fail to perform can be recalled earlier.
The Ministry of Commerce was also directed to focus on the countries of the East, like Malaysia, China and Sri Lanka, where a lot of potential of Pakistan's export exists and it should be tapped at the earliest. 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, and the Reconstruction Opportunities Zone (ROZ) products will be exported to the US at zero tariff.
Governor State Bank of Pakistan Dr Shamshad Akhtar apprised the ECC of the economic indicators of the country's economy and underscored the need to pursue stringent fiscal and monetary measure directed to narrow down gap between the balance of payments and government revenues. "We have to be realistic and march with confidence on the trajectory of prosperity and development", the Governor stated. A balance has to be stricken between the exports and the imports, the governor emphasised. She thanked the prime minister for the candid discussions on the economy of the country and added that such frank and open discussions had never taken place in the past at such forums. 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 that there was a slight increase of 0.66 per cent in the sensitive price index ending May 31, 2008. Prices of 8 items recorded decrease and 15 recorded no change.