Finance Minister Shaukat Tarin has directed the Ministry of Finance to arrange funds of Rs 18 billion for the import of refined sugar of 0.2 million tons, reported Business Recorder.
On July 16, 2021, the Economic Coordination Committee (ECC) of the Cabinet was briefed about the case as stated in the summary by the Ministry of Industries and Production.
The MoI&P sought approval of the ECC for the following proposals: (i) Trading Corporation of Pakistan (TCP) may be allowed to import 200,000 metric tons of sugar for strategic reserves out of already approved imports of 500,000 metric tons with all applicable Public Procurement Regulatory Authority (PPRA) exemptions; (ii) Utility Stores Corporation (USC) to purchase of sugar from TCP to hold strategic reserves either at its TCP godowns or if required at private warehouses (which will be selected following PPRA rules and doing cost comparison with TCP warehouse facility).
Sugar would arrive in a consignment of 25,000-50,000 metric tons with time lag of 7-15 days in between consignments hence storage needs may actually be less than anticipated at this time; (iii) allocation of Rs 18 billion for import and storage of sugar for 3 months approximately (calculated on the basis of landed cost of the last tender floated by TCP) and warehousing cost by TCP; and (iv) Finance Division to arrange forex of US$ 110 million for the import of 200,000 metric tons of sugar.
