Govt okays additional export of sugar

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the export of 250,000 tonnes of sugar with the condition that the PSMA would not exceed prices in the domestic market.

Federal Minister for Finance and Revenue, Senator Ishaq Dar presided over the ECC meeting on Tuesday.

The Ministry of National Food Security and Research submitted a summary on the export of sugar during the year 2022-23 and presented the recommendations of the 4th meeting of the Sugar Advisory Board (SAB).

The export would be allowed to sugar mills on a first-come-first-served basis. The ECC further decided that the total quantity of export may be distributed among provinces based on their installed crushing capacity, to be determined by PSMA.

The committee also approved a Rs60bn financial arrangement for PSO to ensure the national fuel supplier can meet its international payment obligations to Qatar and maintain the LNG supply chain.

Under the decision, Rs10bn would be disbursed against the budgeted subsidy while Rs50bn would be arranged through bank financing against a federal government guarantee.

Furthermore, the ECC, after deliberation, rejected a proposal of Industries and food ministries and decided that the RLNG supply to these plants would be discontinued with effect from midnight of 3rd January, 2023.

The ECC deferred a summary submitted by the Ministry of Industries and Production tabled on price fixation of imported urea, with direction to work out and submit detailed mechanism for sharing of subsidy by provincial governments.