The Economic Coordination Committee (ECC) of the Cabinet, which met on Thursday under the chairmanship of Finance Minister Senator Ishaq Dar, approved support price of Rs 3,000 per 40 kg for seed cotton for the benefit of the farming community.
The meeting dilated at length on the proposal submitted by the ministry of textile and industry for allowing support price for seed cotton 2014-15 crop. The support price recommended by the Agriculture Policy Institute (API) of Rs 3000 per 40 kg for base grade 3 cotton was approved to benefit the farming community. The Trading Corporation of Pakistan (TCP) will accordingly procure one million bales of cotton at the support price.
The minister said: “The government is aware that the recent floods have badly affected a large part of the agriculture sector. We are cognizant of difficulties faced by our farmers and we shall fully support them in this hour of need.”
The ECC also approved the Gawadar-Nawabshah LNG terminal and pipeline project under which a pipeline system of 700 km from Gawadar to Nawabshah, with 42 inch diameter pipeline, shall be laid and two compressor stations will be constructed also. The terminal will have the capacity to handle up to 500 mmcfd of gas. The Interstate Gas Systems (Pvt) Limited (ISGS) will be authorised to execute implementation of the project.
The finance minister while approving the project in principle advised the ministry of petroleum and natural resources to finalise the funding plan preferably on government-to-government or BOT/BOO basis.
The ECC also considered and approved with amendment the proposal submitted by the ministry of industries and production for determination of local manufacturing status of machinery, equipment and other capital goods (Energy Sector) in light of the 2014-15 Finance Bill.
Further, it was also decided to facilitate local manufacturers and provide them a level-playing field. Accordingly, a working committee is to be formed by the Federal Board of Revenue with representation from the ministry of industries/national tariff commission, EDB, Board of Investment and local manufacturers of energy equipment to review whether appropriate incentives can be offered to manufacturers to address their grievances and enhance their competitiveness for increased local and export sales.