ECC approves wheat price Rs.625 per 40 kg
By Asad Cheema

ISLAMABAD—The Economic Coordination Committee of the Cabinet (ECC) on Tuesday gave formal approval of the Guaranteed Minimum Price (GMP) of wheat from Rs. 510 to Rs. 625 per 40 kg as announced by the Prime Minister on March 29, 2008 on the floor of the National Assembly. The first ECC meeting of the democratic government was held here at the PM Secretariat with Prime Minister Syed Yousuf Raza Gilani in chair.
It was also decided that the provinces should re-adjust with immediate effect the release price of wheat in accordance with the recently announced GMP. The Prime Minister directed that all-out efforts should be made by the Provincial Governments/PASSCO to ensure maximum procurement of wheat at the announced GMP. Decision regarding import of wheat will be made in the light of post harvest estimates.
The ECC decided that programmes would be formulated to
pro ide relief to the poor and vulnerable groups of society. The proposals in this regard would be presented to the Cabinet for decision. Anti-smuggling measures will be beefed up on both the western and the eastern borders.
The ECC further decided that 100% grinding of the wheat released to the flour mills by the Provincial Governments should also be ensured. Ban on export of wheat/wheat products will remain in force. Registration of all wheat stockists in the private sector and complete monitoring of wheat movement out of provinces will also be undertaken to ensure availability of wheat in different regions of the country.
In view of the prevailing power deficit and need for immediate power generation capacity, the ECC decided that all Independent Power Producers (IPPs) nearing financial close by 30th April 2008 be allowed to import Cooling Towers, Heat Recovery Steam Generators and Feed Water Pumps after paying 5% customs duty as a one time relaxation. In this regard, the ECC also approved amendment in the Income Tax Ordinance 2001 which read as follow:
“Provided further that exemption under this clause shall also be available to the expansion projects of existing Independent Power Projects already in operation.” It may be mentioned that private power projects under the 1994 Power Policy and the 2002 Power Policy are exempted from income tax subject to fulfilment of certain conditions. KAPCO’s existing power generation facility, being a privatized unit of public sector was allowed income tax exemption only up to 28th June 2006.
However expansion of KAPCO power plant has been approved by PPIB Board under the 2002 Power Policy which allows income tax exemption for the term of the project. Therefore, in order to provide income tax exemption to the KAPCO expansion project in line with the 2002 Power Policy, an amendment is required in clause-132 of part-I of Second Schedule to the Income Tax Ordinance 2001.
Further expansion of few other existing IPPs has been approved by the Board of PPIB, including Hub Power, Japan Power, Kohineer Energy and Tapal Energy. These expansions are again being implemented under the 2002 Power Policy, hence the aforementioned amendment in the income tax ordinance 2001 is also needed for these expansion projects.