ISLAMABAD, Sept 27: The Economic Coordination Committee on Wednesday approved a decrease in the price of DAP fertiliser to the tune of Rs250 per bag and an increase in the support price of wheat by Rs10.

The ECC also allowed operation of foreign insurance companies in Pakistan and import of 100 megawatt electricity from Iran for Gwadar.

This was said by Prime Minister Shaukat Aziz at a press conference after the Economic Coordination Committee meeting.

Two islands, Bandali and Baddu, located near Karachi and spread over 2000 acres, had been given to the Emaar Properties to carry out development work, he said. The project would be completed in 13 years (Details on Page 3).

Mr Aziz said the government was working for the uplift of the farming community. “It is taking several measures to raise their income because the agriculture sector serves as backbone to the economy of the country.”

He added steps were being taken to reduce the cost of agricultural production.

He said the government would soon launch a campaign to create awareness about quality fertilisers among the farming community so that they were convinced to use DAP fertiliser instead of Urea fertiliser. “The decision has been taken with mutual understanding of importers and manufacturers of fertilisers.”

The prime minister said the government had allocated Rs12.3 billion to provide subsidy on fertilisers.

He said the Sensitive Price Indicator was showing a gradually declining trend. During September 23 and 25, flour price had decreased from Rs13.21 to Rs13.09 per kg and sugar price from Rs33.34 to Rs33.16 per kg, he added.

“Sale at the Utility Stores outlets has increased four fold due to Ramazan package. Flour and wheat are the cheapest in Pakistan as compared to other countries of the region. Price magistrates are working in every province. They have challaned profiteers.”

The price of gas was increased … but the gas marketing companies had withdrawn the increase under my directives, he added.

“The support price of wheat has been enhanced from Rs415 to Rs425. As much as 1 million tons DAP fertiliser is available in the country and 200,000 tons more will be imported,” he said. “Price of fertilisers in the country will be decreased with the reduction of the prices in the international market.”

The government had withdrawn duty draw-back facility on cement imported from Afghanistan to stabilize the prices, he said. The ECC has given approval for restoration of this facility, he added.

He said an oil reservoir has been discovered in Kohat.—Online