Govt slaps 25pc duty on Indian potatoes

ISLAMABAD - Amid India building pressure against Pakistan, Economic Coordination Committee (ECC) on Tuesday moved to discourage import of potatoes from the rival neighbour by slapping a significant regulatory duty on it.
ECC of the Cabinet, the government's apex body on economic affairs, met here with Prime Minister's Advisor on Finance Shaukat Tarin in Chair to impose 25 per cent duty on import of potatoes from India.
According to an official handout, the ECC decision would provide incentive to local farmers for increasing crop yield to cater to domestic market needs. Another reason it added was Pakistan's own self-sufficiency in indigenous production of potatoes more than 2.5 million tonnes on 1.3 million hectares area of land.
Earlier the ECC reviewed Key Economic Indicators (KEI) and overall price situation in the country and noted that overall Consumer Price Index-based inflation had registered a deceleration of 1.4 per cent during December 2008 comparable with preceding year. Current wheat stock during first week of January 2009 amounted to 2.232 million tonnes. The ECC considered it as adequate to meet domestic requirements.
According to information provided to the ECC, forex reserves during January 2009 stood at $ 10.0 billion that included impact of IMF's first tranche of disbursement and other private foreign inflows. The data submitted to Committee also indicates overall workers' remittances during July-December 2008 at $ 3640.0 million increased by 18.7 per cent. Federal Bureau of Statistics reported it had collected Rs.547.9 billion during first six months ending December 2008, posting increase of 25.9 per cent against same period last year.
ECC directed the Economic Affairs Division to adopt transparent procedures for re-lending of foreign loans to Provincial Governments, Corporations. The EAD had come up with new proposal for the re-lending seeking increase in mark-up rates as well. However, the ECC wanted transparent terms and conditions, which may have Exchange Risk Coverage (ERC) subject to Provincial Governments' concurrence to nominal administrative charges. Disagreeing to the EAD's proposal seeking increase in re-lending mark-up rate, the ECC directed it to reconsider its recommendations and resubmit fresh proposals after necessary homework.
ECC approved Ministry of Industries' proposal for supply of magnetite concentrate by MRDL Saindak to Pakistan Steel Mills on the plea that Pakistan Steel is the only end consumer of this bye-product.
The Committee at the same time granted exemption from regulatory duty on import of capital goods for business of retail chain stores. ECC approved the Investment Ministry's proposal with procedural modifications.
On Ministry of Industries and Production summary for permitting Trans Polymers Ltd (TPL) to set up Polyethylene Plant at Port Qasim costing Euro 400 million, the ECC allowed issuance of Revised Letter of Intent as an incentive package for investment in petrochemical industry, stipulating one year time framework.