Pakistan may barter rice for Philippine sugar

ISLAMABAD The Federal Cabinet Wednesday decided to increase across the board pay of army officers by 15 per cent and of jawans by 20 per cent irrespective of their deployment in any part of the country.
The cabinet which met under the chairmanship of Prime Minister Yousuf Raza Gilani, also asked Trading Corporation of Pakistan (TCP) to import 0.5 million tons of sugar through open competitive bidding to meet the growing needs in the country.
The Philippines government has told the Pakistan government that they can provide one million tons of sugar at a better price, Minister for Information Qamar Zaman Kaira told a news conference while giving a briefing on the Cabinet meeting.
They are ready to get rice in exchange from Pakistan but its not a condition, he said after a Federal Cabinet meeting.
We will take a decision in the countrys interests. The lowest possible price and the sugar that conforms to standards of Pakistani sugar, we will import that sugar, he said.
The cabinet was also informed that Philippines and UAE have shown interest in providing sugar to Pakistan. Manila has also shown willingness to get rice from Pakistan in exchange of sugar.
The Cabinet approved eight rental power projects, which have been indicated as suitable in the audit report of Asian Development Bank.
The cabinet formed a committee consisting of Finance and Interior Ministers to consult with Balochistan government to bring at par the pay of police personnel in the province at par with other provinces.
Giving briefing about the economic situation in the country, Finance Minister Shaukat Tarin informed that despite security situation, political instability and drought like conditions, the economy is showing positive trend and the GDP growth during the current financial year will be around 3.4 per cent.
Later, while addressing a press conference, Minister for Information Qamar Zaman Kaira said that the cabinet approved the proposal of 15 per cent and 20 per cent increase in Army officers and jawans salaries respectively. Presently the officers and jawans performing duties at western borders were getting the increased salaries and decision has been taken to end this anomaly, he told a questioner.
Information Minister was flanked by Finance Minister Shaukat Tarin and Minister for Water and Power Raja Parvez Ashraf.
The allowances have already been doubled for those who are in operation against militants. Pay and Pension Committee, he said, would submit its report in March and salaries of civil servants pay will accordingly be increased from July 2010.
Kaira said that TCP has been directed to make arrangements to initially import 0.5 million tons sugar. He said that it was also decided to go for open bidding process.
Minister for Water and Power Raja Pervez Ashraf said that after the criticism on the rental power projects, it was decided to review it by the third party Asian Development Bank.
The Asian Development Bank has asked the government to vigorously begin eight power projects having about twelve hundred megawatt capacity into its system, he said adding that ADB after reviewing it for five months has allowed the government to implement eight out of 14 projects immediately.
Raja Pervez Ashraf said that efforts are underway to shift our all electricity generating plants on gas but it would take two years time.
The Federal Cabinet gave approval for the installation of a new 747 megawatt power plant at Guddu. It will replace the old machinery of Guddu power house as its generating capacity has fallen to 200 megawatt, he added.
Information Minister said that the cabinet reviewed the wheat situation and was informed that there would be a surplus stock of 03 million tons which will be carried out to next year.
However, minister said the cabinet fixed the wheat procurement target of 7.5 million tons for next crop hoping that there would be no shortage.
Finance Minister Shaukat Tarin said that the Friends of Democratic Pakistan Forum have made commitment to provide 1.8 billion dollars to Pakistan. The countrys economy is improving but we cannot say it tiger economy, he added.
Tarin said billions of rupees annually are being wasted in eight sectors including Railways, PIA, Pakistan Steel Mill, National Highways Authority and Utility Stores Corporation which needs to be made rational.
He said exports in six months were $9.2 billion showing a drop of three per cent while imports were $16 billion showing a reduction of 16% and as a result the trade deficit came down to 29%. The Finance Minister said inflation which was 23.3% last year has come down to 10.5%
He said Pakistan witnessed minimum increase of 11% in food prices as against World Bank estimates of 22%, IMF 15% and FAO food index increase of 12% at global level.
Shaukat Tarin said the FBR will achieve revenue collection target of Rs 1,380 billion. He said the country could collect another about Rs 750 billion more if all areas are brought under tax and leakages plugged.