ECC approves support price for cotton

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet here on Thursday approved the support price recommended by Agriculture Policy Institute (API) of Rs3000 per 40 kg for base grade 3 cotton and the Trading Corporation of Pakistan (TCP) would procure one million bales at this price.

Decision to this effect was made by the ECC meeting held under the chairmanship of Finance Minister Mohammad Ishaq Dar here. The meeting dilated at length on the proposal submitted by the Ministry of Textile and Industry for allowing support price for seed cotton 2014 15 crop.

The minister said: “The government is aware that the recent floods have badly affected a large part of the agriculture sector. We are cognizant of difficulties faced by our farmers and we shall fully support them in this hour of need.”

The ECC also approved the Gawadar Nawabshah LNG Terminal and Pipeline Project under which a 700 km pipeline of 42 inch diameter would be laid from from Gawadar to Nawabshah and two compressor stations constructed.

The terminal would have the capacity to handle up to 500 mmcfd of gas. Interstate Gas Systems (Pvt) Limited (ISGS) has been authorized to execute the implementation of the project.

The Finance Minister while approving the project in principle advised the Ministry of Petroleum and Natural Resources to finalize the funding plan preferably on government to government basis or BOT-BOO basis.

The ECC also approved with amendment the proposal submitted by the Ministry of Industries and Production for determination of local manufacturing status of machinery equipment and other capital goods (energy sector) in light of the 2014 15 Finance Bill.

Further it was also decided to facilitate local manufacturers and provide them a level playing field. Accordingly, a working committee would be formed by the Federal Board of Revenue with representation from Ministry of Industries National Tariff Commission EDB Board of Investment and local manufacturers of energy equipment to review whether appropriate incentives can be offered to manufacturers to address their grievances and enhance their competitiveness for increased local and export sales.

The meeting was attended by Minister for Industries and Production Ghulam Murtaza Jatoi, Minister for Information Broadcasting and National Heritage Senator Pervez Rashid, Minister for National Food Security and Research Sikandar Hayat Bosan, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, secretaries of various divisions and heads of different departments.