ISLAMABAD, Dec 12: The government on Wednesday allowed import of 500,000 bales of short staple cotton from India through land route (Wagah) to overcome domestic shortage, it is learnt.

Sources said the decision to this effect was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by caretaker Prime Minister Mohammadmian Soomro. Caretaker finance minister Dr Salman Shah did not attend the meeting.

The sources said the ECC directed Deputy Chairman of the Planning Commission Dr Akram Sheikh to ensure that cotton import did not exceed the allowed limit that might cause the domestic cotton prices to crash, to the disadvantage of farmers.

It was for the first time in more than eight years that almost all the leading newspapers were kept out of a briefing on the ECC meeting despite repeated requests.

The briefing by Adviser to the Finance Ministry Dr Ashfaq Hassan was kept restricted to the official media and cameramen of the electronic media. The sources said the ECC also gave a post-facto approval to a Rs18 billion syndicated loan through Habib Bank Limited for payment to Pakistan State Oil (Rs12 billion) and Shell Pakistan (Rs6 billion) at an interest rate of 10 per cent. The government will repay Rs22 billion next year to the banking consortium in one go that would include both the interest as well as the principal amount, the sources said.

The loan has been arranged to improve cash flow problems being faced by the oil companies that has led to the lowest ever oil stocks in Pakistan’s history. The cash flow problems arise due to a freeze on oil pricing.

The meeting, the sources said, was informed that the Sindh government had provided a full-month wheat quota to flour mills, instead of weekly quota, to overcome flour shortage. As a result, the government claimed that wheat price had declined from Rs19 to Rs17 per kg.

The meeting was also informed that with the imposition of regulatory duty on wheat products a few days ago, the exports to Afghanistan had came to a negligible level.

The ECC also endorsed de-linking of prices of liquefied petroleum gas (LPG) with Saudi Aramco Contract price allowed by the caretaker prime minister early this month.