Impact of fuel price cut must reach masses: cabinet

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Prime Minister Shehbaz Sharif chairs a meeting of the federal cabinet on Friday. — PID
Prime Minister Shehbaz Sharif chairs a meeting of the federal cabinet on Friday. — PID

ISLAMABAD: The Federal Cabinet on Friday directed the federal and provincial authorities concerned to ensure that the impact of the cut in petroleum prices immediately reached the people in the shape of reduced fares and transportation costs.

Information Minister Marriyum Aurangzeb said the cabinet discussed the reduction in the prices of petroleum products and asked the provincial governments to take immediate steps so that the relief reaches the people. She said the cabinet decided to keep a close watch for the implementation of the POL price cut in the shape of reduced fares and resolved to transfer whatever relief becomes available in international markets to the masses.

The cabinet also approved a one-time amnesty until December 31 for foreign nationals overstaying in Pakistan to report and return to their home countries.

The minister said the cabinet ratified the July 5 decision of Economic Coordination Committee (ECC) to allow clearance of luxury goods arrived at ports two weeks after the ban on such imports on payment of a five per cent fine and then a 15pc duty on consignments that reached Pakistani ports beyond 15 days. She said the ban on the import of luxury imports would continue.

Ban on import of luxury goods to continue

She said the cabinet also ratified other decisions of the ECC meeting of July 5, including the import of three million tonnes of wheat while keeping in mind the falling international prices. She said the cabinet directed that imports should be ensured in an open and transparent manner and the lowest available prices should be booked.

The cabinet also ratified other decisions of the ECC. This included Rs193 billion worth of supplementary grants to meet requirements for repayment of principal and interest against “short-term external borrowing, Eurobonds and Sukuk” etc.

The ECC had also suspended certain conditions on the import of timber/wood till August 31, 2022 because of the “hardship case of timber importers” as the consignments were supplied against contracts months ago and the shipments had already arrived at ports. The implementation date of the Import Policy Order (IPO 2022) for the import of timber and wood falling under HS Codes 4401 to 4409 will be postponed until August 31, 2022, i.e. for Bills of Lading issued on that date.

It was reported that IPO 2022 conditions could not be met because these imports were supplied against contracts entered into months ago and relevant documents could also not be provided because consignments were in pipeline when the regulations were enforced. Customs had reported that about 224 containers of timber/wood had arrived at various ports where importers had no valid import permit and plant protection release order, and since the consignments had reached, the relevant documentation from the import origin country could not be met.

The cabinet also approved the constitution of 14-member Auction Advisory Committee to oversee spectrum auctions for next generation mobile services.

With the cabinet ratification, paragraph 3(1) of the IPO 2022 would also be amended to allow the import of goods of Afghan origin against the Pakistan Rupee and without the requirement of Importers’ Electronic I-Form (EIF) for a period of one year.

Published in Dawn, July 16th, 2022

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