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Cabinet officials

Economic Coordination Committee Lifts Ban on Imported Goods Except Select Categories

Strategic Insights

— 2 min read

The Economic Coordination Committee (ECC) of the Cabinet increased the dealers' margin for motor spirit (MS) and high-speed diesel (HSD) and lifted the ban on imported goods, excluding Auto CBU, Mobile CBU, and Home Appliance CBU. The decision aims to curtail the rising current account deficit (CAD) and follows a review meeting to address concerns from major trading partners.

The ban on non-essential and luxury items, imposed two months ago, resulted in a 69% reduction in imports, from $399.4 million to $123.9 million. The ECC decided to lift the ban, except for the aforementioned categories, and allowed the clearance of held-up consignments with a 25% surcharge.

Key Takeaways:

  • The ECC increased the dealers' margin for MS and HSD to Rs 7.00/liter.
  • The ban on imported goods, excluding Auto CBU, Mobile CBU, and Home Appliance CBU, has been lifted, allowing the clearance of held-up consignments with a 25% surcharge.
  • The imports of banned items reduced by 69%, from $399.4 million to $123.9 million.
  • The ECC approved the lowest bid offered by M/s Falconbridge FZ LLC for the 4th International Wheat Tender 2022 at $407.49/MT CFR bulk on sight LC basis.
  • The ECC decided to maintain the compensation package for Chinese causalities at Dasu Hydro Power project at $11.6 million.
  • The ECC directed Ministries of Petroleum, Finance, National Food Security, and Industries and Production to work out the gas price/VCM for fertilizers.
  • Sales tax will be charged on the actual price of gas paid by the company.
  • The meeting was attended by senior government officials, including Federal Minsters and federal secretaries.

Statistics:

  • The ban on imported goods resulted in a 69% reduction in imports, from $399.4 million to $123.9 million.
  • The imports of banned items reduced by $275.5 million, a decrease of 69%.
  • The ECC approved a 25% surcharge on held-up consignments.
  • The compensation package for Chinese causalities at Dasu Hydro Power project is $11.6 million.
  • The lowest bid offered for the 4th International Wheat Tender 2022 is $407.49/MT CFR bulk on sight LC basis.

Sources:

  • Ministry of Commerce submitted a summary on prohibition/complete quantitative restrictions on import of non-essential and luxury items.
  • Ministry of Petroleum Division submitted a summary on revision of OMCs and dealers margins on petroleum products.
  • Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of 4th International Wheat Tender 2022.
  • Ministry of Water Resources submitted a summary on compensation package for the Chinese causalities at Dasu Hydro Power project.
  • Ministry of Industries and Production submitted a summary on issues faced by Fatima Fertilizer (Sheikhupura Plant) and Agritech.

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