ECC orders PASSCO to procure additional wheat to address grievances of farmers 

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has given approval to increase the wheat procurement target for PASSCO from 1.40 to 1.80 Million Metric Ton (MMT) at Rs3,900/40kg to address the grievances of farmers.  

The Federal Minister for Finance & Revenue, Senator Muhammad Aurangzeb presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet, today.

The Economic Coordination Committee (ECC) reviewed and approved a number of proposals from various Government Ministries and Divisions.

Sources said that the Ministry of National Food Security and Research has presented a summary with regard to the enhancement of the wheat target by 0.40 MMT to 1.80 MMT from 1.40 MMT along with a fresh Cash Credit Limit (CCL) amounting to Rs41.50 billion to procure a additional quantity at the profitable support price of Rs3,900/40kg.

In order to mitigate the grievances expressed by the farming community regarding delay in the procurement process by the provincial governments, a consultative meeting was convened on 29-04-2024 under the chairmanship of the minister for NFS&R with the PASSCO.

It was decided in the meeting that the Ministry of National Food Security and Research shall move a summary to the ECC of the Cabinet for enhancement of the wheat procurement target from 1.40 to 1.80 MMT along with CCL for procurement of the additional quantity of 0.40 MMT.

The PASSCO has reported that a quantity of 1.62 MMT is in balance as of April 29, 2024, comprising 1.27 MMT carry-forward stock and fresh procurement of 0.44 MMT. It is also reported that a quantity of 0.079 MMT has already been released. 

The PASSCO has submitted its request regarding the procurement plan of a new allocation of 0.40 MMT among procurement centres of provinces along with CCL of Rs41.50 billion.

However, it has been clarified by the PASSCO that the requisite amount on account of procurement of additional 0.40 MMT will be adjusted against the receivable amount received from the recipients for which CCL for the quarter from April-June2024 has already been approved by the Finance Division. 

The ECC gave approval to increase the wheat procurement target for PASSCO from 1.40 to 1.80 MMT along with the required Cash Credit Limit for the purchase of additional quantities. The approval would help PASCCO scale up its ongoing wheat procurement drive.

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The ECC also approved the proposal for the import of 200,000 MTs of Urea fertiliser to meet the requirements for Kharif 2024 as proposed by the Ministry of Industries & Production. The Ministry was also directed to continuously assess the demand & supply situation of urea and suggest appropriate measures to the ECC in a timely manner.

ECC also gave the go-ahead to the Ministry of Industries & Production’s request for the disbursement of salaries of PSM workers and directed the Ministry to present a detailed plan for the future use of the asset along with timelines.

ECC also allowed the Power Division’s request for release of budgeted expenditures to clear the arrears of tariff differential subsidy of Rs70 billion for KE and Rs 55 billion for AJK. This would help ease the liquidity requirements of the Power Sector.

The ECC considered a summary to authorize BISP to arrange funds from its allocated budget for financing the Special Relief Package for Daily Wage Workers on the Chaman Border, highlighting government support for the vulnerable group.

Further, the ECC considered and approved proposals for Technical Supplementary Grants, including:

1.Rs4.8 billion for the Pakistan Atomic Energy Commission.

2. Rs58 billion for the Earthquake Reconstruction & Rehabilitation authorities to clear matured liabilities of the contractors.
3. Rs3.2 billion to Finance Division as rupee cover for the WB-funded Financial Inclusion and Infrastructure Project (FIIP).
4. Rs162 million to the Ministry of Housing & Works for Repair and Maintenance of Public Buildings in Islamabad.
5. Rs2.2 billion to the Ministry of Interior for the FATA TDP-ERP Project.