ECC surprised as ministry suddenly withdraws request for sugar import

Amid rising prices, the Ministry of Industries and Production on Wednesday withdrew its request for sugar imports at the last moment leaving the Economic Coordination Committee (ECC) of the Cabinet to approve a couple of technical supplementary grants.

The meeting presided over by Adviser to PM on Finance and Revenue Dr Abdul Hafeez Shaikh also approved payment of Rs1.696 billion by the Pakistan State Oil (PSO) to Port Qasim Authority in 10 years. Informed sources said the industries ministry had moved a case to the ECC for duty and taxfree import of 300,000 tonnes of sugar to check rising prices in the country despite the fact that sugarcane crushing season was currently in full swing.

Just before the ECC meeting formally began, cabinet secretary reported that the industries ministry had withdrawn the summary, an official told Dawn. No reasons were officially given but informed sources said an announcement by the federal cabinet on Tuesday that it had inducted a representative of the Inter-Services Intelligence in a committee probing the sugar price hike compelled the Industries Division not to pursue sugar import when crushing season was in progress.

In the last week of February, PM Imran Khan had constituted a committee comprising senior representatives of Federal Investigation Agency, Intelligence Bureau and Anti-Corruption Establishment, Punjab to investigate reasons behind sugar price hike in the middle of crushing season and suggest if anybody was behind the price manipulation or cartelisation and identify culprits.

The meeting took up the request from Ministry of Maritime Affairs (MMA) for the recovery of outstanding wharfage of Rs1.696bn on import of LNG by the PSO and directed that outstanding amount be paid in 10 equal installments without interest over a period of next ten years as recommended by a committee led by Minister for Economic Affairs Hammad Azhar.