ECC okays to revise national wheat strategic reserves to 2MMT

August 30, 2022 (MLN): The Economic Coordination Committee (ECC) has allowed the maintenance of strategic reserves of wheat at the level of 2 million metric tons (MMT), including a quantity of 0.080 MMT on account of the SAARC food bank, said a statement issued by Finance Division on Tuesday.

ECC also approved the revision of the ECC decision for the import of 3MMT of milling wheat. Furthermore, TCP was directed to arrange a further quantity of 0.8 MMT through G2G or open tender.

It was added that the import of 0.8 MMT wheat is allowed to the private sector with the proviso that subsidy shall not be provided for such imports of wheat.

Ministry of National Food, Security and Research presented a summary on refixing of national wheat strategic reserves.

In the wake of recent rainfall and flood damages ensuing financial issues of farmers for the next wheat sowing season, rising local wheat prices and hoarding and smuggling issues, the aforementioned quantity is insufficient.

Therefore, in order to ensure wheat availability across the border and to stabilize local wheat prices, it was proposed that the quantum of wheat strategic reserves may be retained at the level of 2 MMT.

On the FATF front, National FATF Coordination Committee on AML/CFT presented a summary for approval for arrangements/ expenditure related to the on-site visit of the FATF/APG assessors’ team.

It was shared that the FATF team comprising 15 members will visit from 29 Aug to 2 Sep. 2022 in order to verify the stance of Pakistan as reported in cyclic reports.

In this regard, a summary for the allocation of TSG of Rs. 7 million was presented. ECC approved this summary.

Furthermore, the Ministry of Economic Affairs presented a summary of the G-20 Debt Service Suspension Initiative (DSSI).  This debt relief, termed DSSI-I, for IDA-eligible countries to mitigate the socio-economic impact of Covid-19 was announced in April 2020.

Currently, further six agreements for DSSI-III with Italy, Japan, and Spain have been negotiated and finalized. Foregoing in view, of the signing of 6 debt rescheduling agreements with the 03 creditor countries by secretary EAD on behalf of the government of Pakistan, this summary was presented in ECC.

After discussion, the ECC agreed on rescheduling the agreement proposed by EAD on account of deferred payments due to Covid-19.

Federal Minister for Finance and Revenue Mr. Miftah Ismail presided over the said meeting.

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