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Ban on luxury imports eased

ISLAMABAD:

federal government on Thursday lifted the ban on import of products with exception of fully assembled cars, mobile phones and home devices, while also import allowed 200,000 metric tons of wheat at $407.5 per ton price.

Economic Coordinating Committee (ECC) of office, which took these decisions also authorized the Ministry of Foreign Affairs to deal with with Chinese company for compensation to your employees who died in Dasu bus attack after the Chinese government refused to accept the $11.6 million offer. compensation.

AT official handout, ministry of The Ministry of Finance stated that the Ministry of Finance of Water Resources submitted a summary on compensation package for Chinese casualties at the Dasu hydroelectric plant project.

EX decided that amount of compensation and benevolence package will remain same as before in ECC decision dated January 21, 2022 ($11.6 million) and approved disbursement of in compensation and benevolence amount directly M/s China Gezhouba Group International Engineering Co Ltd (CGGC) through the Ministry of foreign affairs.”

Earlier, the ECC approved the payment to the Chinese. government through Pakistani embassy in Beijing.

Pakistan handed over money to their embassy, ​​but the Chinese government refused to accept it on grounds that payment should to be directly made to a company that works on hydroelectric power plant Dasu projectThis was reported in the ECC.

“How to ruleChinese government not directly receive or give compensation from foreign parties and as CGGC contractor of Dasu HPP power project is a state-owned enterprise, it is assumed that Pakistan reports with Gezhouba Group directly,” Chinese government Pakistan reported.

It has now been decided that the Ministry of Foreign Affairs through the Embassy of Pakistan in Beijing will deal with CGGC in Beijing and pay compensation amount of $11.6 million directly to the company.
Pakistan decided to make the payment despite fact no legal or contractual obligations on in government.

Dasu HPP project financed by the World Bank and does not fall in scale of China-Pakistan Economic Corridor (CPEC). 4,320 megawatt Dasu hydroelectric power plant project being built by CGGC with financing from the World Bank. Four Pakistani citizens also died in in attack.

Import ban

ECC approves lifting of two-month ban on import of goods other than wholly built cars, mobile phones and home devices, according to decision.

in light of in fact which imports heavily reduced through consistent efforts of in governmentESS decided to lift the ban on imported goods, except for auto CBU, mobile and home household appliances,” the Ministry of Finance said in a statement.

Then everything happened-up goods other than items which is still remain in a prohibited category that arrived at ports after July 1, 2022 will be cleared by customs subject to payment of 25% surcharge, according to decision.

On May 19, a ban was introduced in Pakistan. on import of 33 categories of goods, coating more over 860 product lines.
Analysis of import data showed that declining trend of import after introduction of ban.

General import of forbidden items decreased by over 69% – from $400 million to $124 million, according to the Department of Commerce.

main contribution came from auto sector and mobile telephone kits, imports of which have been significantly reduced, covering about $218 million. of in reduced import value of 400 million dollars. The remaining 21% of the reduction fell on 810 tariff lines.

In response to serious concerns expressed by major trading partners on overlay of ban and subject to fact that the ban affected supply chains and domestic retail, it was decided to limit the ban to only those who items which helped curb imports.

Nonetheless government opened doors that could be used to bring in still prohibited goods.
This allowed temporary import-export-export of auto CBU for Exhibition, display, test or trial purposes under the ATA carnet (passport for goods) and the TIR Convention. Convention on International transport of Undercover goods of TIR Carnets (TIR Convention) is a multilateral agreement that does not provide for the payment of customs duties and taxes.

Islamabad signed the convention in August 2015 and ratified it in January 2016. Import of samples of mobile CBU has also was allowed for mobile device manufacturers for research as well as development goals on recommendation of Telecommunications Authority of Pakistan.

Industrial appliances covered by home CBU household appliances and imported household appliances government branches through merchants, hospitals and registered charities are exempt from the ban.

Wheat import

Pakistan on On Thursday, a decision was made to import 200,000 metric tons of wheat worth of $85 million ($407.49 per indicator ton), which will increase the price per kilogram of wheat price up to 106 rupees.

The fresh tender was slightly more expensive than the previous one. AT price of $404.86 per ton, government allowed the import of 300,000 metric tons of wheat last a week.

Due to the relatively low exchange rate per kilogram, price was 89 rupees which would now go up up to 106 rupees.
With the new approval, Pakistan has so far imported one million metric tons of wheat. ESS also aimed at negotiating price of wheat imported from Russia under government-to-government to deal with.

Prime Minister Shehbaz Sharif on On Wednesday, he said that Russia had offered to supply wheat, that his government received.

trading corporation of Pakistan (TCP) invited bids on both cash and deferred payment due to the depletion of foreign exchange reserves. But the bidders gave bids of $419 to $458 for ton on deferred payment, which was impossible.

The country is threatened with at least three million tons of wheat shortage and government already took decisions for import of one million metric tons.

According to the proposal evaluation committee report, the proposal with the lowest response against said tender was from Falconbridge Resources FZ LLC, which offered to provide of 110,000 metric tons of wheat.

Dealer markup

The ECC has approved a dealer margin increase of Rs 7 per litre. on gasoline – splash of 43% or 3.04% of sale price. it also Dealer margin increase approved on diesel fuel from 4.13 to 7 rupees per liter – increase of 70% or 3% of existing price.

The ECC was informed that the existing margin was fixed in December 2021 and the Pakistan Petroleum Dealers Association approached government for immediate revision of their margin due to inflation increases in rates and utility bills.

Ministry of Industry and manufacturing submitted a summary on questions faced from Fatima Fertilizer (Sheikhupur plant) and Agritech. Both plants based on SNGPL were operated by supply of RLNG on a cost- shared basis.

EC after discussion approved the proposal ensure agreement with than before decision of ECC and Federal Cabinet of transfer of both plants to local gas. The ECC further instructed ministries of oil, finance, national food security and industry and production for work out gas price/VKM for fertilizers.

ESS also decision to levy sales tax on Real price of The company pays for the gas.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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