Import of duty free cement allowed
By Zulfiqar Ahmad

ISLAMABAD—Economic Coordination Committee of the Cabinet (ECC) on Thursday approved duty free import of cement to stabilise its prices.
The ECC met here under the chairmanship of Prime Minister Shaukat Aziz decided to abolish 25 per cent customs duty and withdraw 6 per cent withholding tax on the import of cement to boost the construction industry in the country.
Dr. Ashfaq Hasan, Economic Advisor while briefing the press after the meeting said there would be no condition on the import of cement and it could be imported in any quantity and from any country.
The ECC was also informed about price situation of cement which was Rs. 259 per bag of 50 kg on June 9 this year and increased to Rs. 284 per bag. The ECC decided to allow duty free import due to increase in the demand of cement in the country because of the boom in construction industry.
The construction industry is related to 30 to 40 industries and increase in prices of cement was creating problem for these industries.
The ECC also decided to release 50,000 tonnes sugar from the reserve stocks of Trading Corporation of Pakistan (TCP) two weeks before forthcoming Ramzan ul Mubarak to stabilise its price during the holy month.
The ECC also decided to release sugar from TCP in consignment of 50 to 500 tonnes to discourage its hoarding by big businessmen. The sugar will be released through open tenders and sugarmill owners would not be allowed to participate in the tender to eliminate chances of hoarding by them.
The ECC was informed that TCP had 311,515 tonnes sugar in its reserves while 200,000 tonnes is being imported, of which 125,000 tonnes would reach Pakistan by September 30th while remaining 75,000 tonnes would be imported in October this year.
These measures are being taken by ECC to stabilise prices in the market during the month of Raman as consumption of sugar increases during the month.
The Prime Minister also informed ECC that special directives are being issued by him to all Chief Ministers to take adequate measures to keep prices of essential items at reasonable rates during the forthcoming month of Ramzan ul Mubarak as they did last year. While reviewing the Sensitive Price Index (SPI) of various essential items, the ECC was informed that there has been downward trend in the prices of sugar and other essential items due to liberalization of import regime.
The ECC was informed that the average price of sugar was Rs. 28.34 per kg in the open market on 1st August this year while it was Rs. 27.67 per kg on August 27. The ECC also reviewed the prices of other essential items and decided to take adequate measures to keep the prices of these items at reasonable and within the reach of common man.
The ECC was informed that due to measures taken by the government, the price of wheat was also reduced last month. It was Rs. 11.60 kg on August 1st this year and reduced to Rs. 11.45 kg on August 27.
Regarding the price of atta, the ECC was informed that its price is still lowest in the region as compared to other countries where its price is higher. The price of per kg atta is Rs. 18.78 in New Delhi, Rs. 24.00 in Kabul, Rs. 16.28 in Bejing, Rs. 36.00 in Colombo and Rs. 28.00 in Jeddah while the price of atta in Pakistan is Rs. 13.00 per kg.
The ECC was also informed that the SPI had been improved during the week ending August 24 as compared to the corresponding period last year.
The increase in the prices of essential items during the week ending August 24 was 8.0 per cent while this increase was 9.5 per cent during the week ending July 14 this year.
The ECC also decided to impose 20 percent export duty on hide and skin to discourage the export of raw material and to keep export competency of the country with encouraging export of finished leather goods.
The decision had been taken by the ECC with a view to protect and promote value added industry.
The energy sector was also discussed in detail in the ECC and it was decided that the exploration of gas would be expedited in Pakistan to meet the gas requirements.
The ECC was informed that Iran-Pakistan-India gas pipeline project had entered into an advance stage and the ECC decided to materialise the project even if India does not join it.
The ECC also decided to establish Liquified Natural Gas (LNG) terminal at Karachi which will be operative by 2009.
The ECC also decided to constitute Cabinet Committee on Energy with an objective to expedite and coordinate the work being done on various alternative energy resources. The members of the committee would be announced later.
The ECC took serious note of the increase in prices of beef, mutton, chicken and eggs and directed the concerned departments to take adequate measures to stabilise the prices of these essential items.