June 04, 2008	Wednesday	Jamadi-ul-Awwal 29, 1429

ISLAMABAD, June 3: The Economic Coordination Committee of the cabinet asked the provincial governments on Tuesday to lift a ban on inter-provincial movement of flour to improve its supply to areas facing food shortage.

The ECC meeting, presided over by Prime Minister Syed Yousuf Raza Gilani, also asked the interior ministry to take stringent measures to check the smuggling and hoarding of wheat. It stressed that people should get food at affordable prices.

According to officials, the meeting was informed that the government had completed its target of purchasing five million tons of wheat and it had now sufficient stocks to meet any emergency.

An official told Dawn that since flour was a perishable item and could not be stored for more than eight to 10 days, its smuggling to Afghanistan and Central Asian states was not easy. “We don’t see its shortage any more and that is why the prime minister has directed to lift the ban on its inter-provincial movement,” he said.

The meeting also discussed the energy crisis and the prime minister asked the officials concerned to work out short- and long-term measures to end the menace of loadshedding.

The issue could not be thoroughly debated because ministers for finance and water and power left the meeting to discuss some important issues with PPP Co-Chairperson Asif Ali Zardari at his Islamabad’s residence.

Sources said the prime minister had expressed concern over rising prices of all food items and asked the ministries concerned to increase supply and curb profiteering.

According to an official handout, the ministry of food and agriculture informed the ECC meeting that the government had already started supplying wheat to the NWFP. It said the import of 2.5 million tons of wheat would be completed by November and the first consignment of one million tons would arrive in August.

The prime minister asked the ministry of commerce to diversify exports and respond to the dynamics of the international market. The ministry was asked to focus on eastern countries like Malaysia, China and Sri Lanka for exports.

The commerce secretary informed the meeting that the situation in the textile sector would improve next year because of prospects of access to the European market and products made in Reconstruction Opportunity Zones (ROZ) would be exported to the United States at zero tariff.

State Bank Governor Dr Shamshad Akhtar apprised the meeting of economic indicators and stressed the need for pursuing stringent fiscal and monetary measure to narrow the gap between balance of payments and government revenues. She said that there should also be a balance between exports and imports.

The governor said that the problems facing the economy had accumulated over the years and these were never addressed in time in the past.

The ECC was informed that there was a slight increase in the sensitive price index in the week ending May 31. Prices of eight items have declined and 15 remained unchanged.