20000309

ECC satisfied with revenue collection pace

Recorder Report

Islamabad: The Economic Coordination of the Cabinet (ECC) has expressed its satisfaction over the pace of revenue collection and increasing trend in the exports during first eight months of the current fiscal.

The ECC which met with Finance Minister Shaukat Aziz in the chair, on Wednesday, reviewed the economic data relating to trade, CBR's tax collection and monetary developments.

The Governor State Bank, Dr. Ishrat Hussain informed the ECC that from July 1, 1999 to February 2000 the monetary growth was below the target for the year and was expected to remain within manageable proportions and the overall monetary position was satisfactory.

The CBR Chairman briefed the ECC about the revenue collection during the current fiscal. The ECC was informed that Rs. 209 billion was collected till February 2000 against the target of Rs. 362 billion for the full year. This indicated an increase of 18.4 percent over the same period last year. Keeping in view seasonal trends the CBR expects to achieve its target.

As announced in the Chief Executive's Policy in mid-December, CBR has accelerated genuine refunds in order to minimise corruption.

The refunds made by CBR were 18 percent higher than the corresponding period of last year and in February only the CBR made refunds of about Rs. 6 billion, the meeting was further informed.

The ECC noted, on the basis of the February Trade figures, exports were seen to have increased by 13 percent and imports were down by 8 percent over the previous month.

Compared to the corresponding 8 months of the previous year, exports were up by 9.7 percent and imports were up by 13 percent.

For the month of February the trade balance was negative by 93 million dollars compared with over 120 million dollars in February, 1999 and a negative balance of 256 million dollars in January this year.

The ECC noted that major increase in imports was due to extra-ordinary increase in POL prices during the last few months. Import prices for major POL products have increased by more than 100 percent in the last 12 months.

The committee approved the support prices of Tobacco for the 1999 crop. The new prices for the different varieties of tobacco would be flue cured virginia, 33.04; white patta, 14.30; dark air cured virginia, 11.97; and burley, 26.04.

The committee expressed its concern on the increasing trend of sugar prices. The committee directed the concerned agencies to monitor the situation periodically and to bring it to the ECC regularly in its meetings in the coming weeks.

The ECC approved the supply of gas to Liberty Power Project, from Qadirpur field.

The ECC reviewed the prices and availability of essential items in the country and noted that there was stability in the price trend. The kitchen items index maintained a declining trend and the annualised change in the kitchen items Index on a week-to-week basis worked out to be minus 1.32 percent for the week ending February 2, 2000. The meeting was informed that the stock position of POL, wheat and fertilizers in the country was satisfactory.