Plan to give 20,000 tractors to farmers on subsidised rates

ISLAMABAD - The Economic Coordination Committee of the Cabinet directed the concerned authorities to use the forum of controversial Mobile Courts as Price Control Courts to check prices of the essential commodities to provide relief to the masses. ECC met on Tuesday under the chair of Adviser to the Prime Minister on Finance and Economic Affairs Shaukat Tarin.
ECC directed the Ministry of Law and Justice to coordinate with relevant provincial departments to provide the desired legal and administrative support system so that the Mobile Courts could be used as Price Control Courts to ensure bringing down the prices of the items of daily use.
ECC reviewed Key Economic Indicators (KEI) and overall price situation in the country and noted that overall CPI-based inflation has registered a deceleration by 2.8pc.
ECC noted that forex reserves during January 2009 stood at $ 10.138b that included impact of IMF's first tranche of disbursement and other positive inflows. Overall workers' remittances during July-Dec 2008 amounted to $ 4277.3m showing an increase of 18pc ECC observed.
ECC was informed that FBR has collected Rs 702.5 billion during first eight months (July -February), depicting an increase of 20 per cent compared with same period of last year.
Foreign Direct Investment during (July-Jan) amounted to $ 2587.7m registering a healthy growth of 1.3pc compared with the last year's period under review. ECC was informed that as on 22 Feb 2009, domestic wheat stock stood at 1.304m tones, showing higher stock of about 0.452m tones compared with the last year. The wheat procurement target from 2008-09 crops has been fixed as 6.55m tones. The government has decided to import 2.5m tones of wheat in phases this year to augment domestic wheat supplies. Out of 2.5 million tones, TCP so far has imported 1.84m tones of wheat. The remaining quantity is in the pipeline. It was noted that existing sugar stock was reported to be around 1.537m tones to supplement open market needs. ECC noted that 78pc of planned quantity of urea (745,000m tones) has arrived, whereas 22pc is due to arrive at ports of the country.
ECC was informed that inflationary pressures are likely to ease in the next few months owing to sharp decline in commodity prices, particularly POL and palm oil. ECC also advised MINFAL to work out a crop-production and procurement related chart based on tangible forecasts anticipating addition or shortage, enabling the concerned GOP organisations to take suitable decisions aimed at public convenience.
While reviewing EAD summary for Foreign Currency Loans from the private sector borrowers, ECC approved the proposal for instalment of foreign currency loans having fallen due up to 30.9.2008 to be converted into Pak rupee at average exchange rate, rescheduling of interest rate for all private sector borrowers effective after signing of Subsidiary Loan Agreements (SLAs).
ECC approved the MINFAL proposal on the accelerated agricultural mechanisation for productivity enhancement. It also directed the MINFAL to carry out necessary technical homework for provision of 20,000 tractors to the farmers owning agri lands on subsidized rates, stipulating a consensus based criteria for distribution on nationwide basis. The scheme shall be titled Benazir Tractor Scheme.
While considering Ministry of Livestock and Dairy Development proposal to allow to monitor export of live animals as per existing export policy 2008-09 which lays down export of live animals as per already settled procedures and conditions, ECC directed that procedures of export be simplified and all necessary risk based measures like quarantine and health checks be taken along with registration of export contracts keeping in view exportable surplus of live stock.