ISLAMABAD, Jan 13: The Economic Coordination Committee (ECC) of the cabinet on Tuesday partially exempted capital goods imported by retail chain stores from regulatory duty, and imposed 25 per cent additional duty on import of potatoes from India.

The ECC, however, rejected the summary of investment ministry seeking all time waiver from duty on capital goods for all sectors but allowed only one-time waiver for fresh investment in the retail chains sector.

Chairing the ECC meeting Adviser to Prime Minister Shaukat Tarin linked the facility with the procedural modifications.

It was decided to impose 25 per cent regulatory duty on import of potatoes from India that would provide incentive to local farmers for increased crop yield to cater to domestic market needs.

It was observed that the country was self-sufficient in potato production, which is 2.5 million tons.

The ECC rejected the proposal of economic affairs division (EAD) seeking re-visiting of foreign loans re-lending policy to make credit available to the provinces on same terms and conditions on which the federal government and its departments are being provided re-lent foreign loans.

The meeting directed the EAD to reconsider its recommendations for re-lending of foreign loans to federal government organisations/bodies/DFIs and resubmit fresh proposals after necessary homework. The ECC considered the EAD summary outlining fresh proposals for re-lending of foreign loans/credits to provincial governments, government corporations/bodies/DFIs and directed the EAD to follow transparent terms and conditions, which may have exchange risk coverage (ERC) subject to provincial governments’ concurrence along with nominal administrative charges.

The meeting also approved supply of magnetite concentrate by M/s MRDL Saindak to Pakistan Steel Mills. The proposal was moved by industry ministry since Pakistan Steel was the only end-consumer of this bye-product.

While reviewing the ministry of industries and production summary for permitting M/s Trans Polymers Ltd (TPL) proposal for setting up Polyethylene Plant at Port Qasim costing 400 million euros, it decided to allow issuance of revised Letter of Intent from Ministry of Industries and Production to M/s TPL for setting up the said plant as an incentive package for investment in petrochemical industry, stipulating one year time framework.

The meeting reviewed Key Economic Indicators (KEI) and overall price situation in the country and noted that overall Consumer Price Index-based inflation had registered a deceleration of 1.4 per cent during December 2008 in comparison to the same month last year.

The current wheat stock during first week of January 2009 amounted to 2.232 million tons that was considered adequate to meet domestic requirements.

The meeting further noted that forex reserves during January 2009 stood at $10 billion that included the first tranche of $3.1 billion from the IMF and other positive inflows.

The ECC noted that overall workers’ remittances during July-December 2008 amounted to $3.640 billion showing an increase of 18.7 per cent over the last year. The meeting was informed that FBR has collected Rs547.9 billion during first six months of the current fiscal year posting an increase of 25.9 per cent compared with same period of last year.