ECC Approves Wheat Import, Six Debt Rescheduling Agreements Worth $189.52m.

ISLAMABAD -- The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved wheat imAport and six debt rescheduling agreements with three countries including Italy, Japan and Spain amounting to $189.52 million.

The ECC meeting, chaired by Federal Minister for Finance and Revenue Miftah Ismail, has considered the summary of Ministry of Economic Affairs on G-20 Debt Service SuspenAsion Initiative (DSSI). This debt relief, termed as DSSI-I, for IDA eligible countries to mitigate the socio-economic impact of Covid-19 was announced in April 2020. Currently, further six agreements for DSSI-III with Italy, Japan and Spain have been negotiated and finalized. ForeAgoing in view, for signing of 6 debt rescheduling agreements with the 03 creditor countries by secretary EAD on behalf of government of Pakistan, this summary was presented in ECC.

After discussion, the ECC agreed rescheduling of the agreement proposed by EAD on account of deferred payments due to Covid-19. According to the summary, amount of debt suspended from Italy is $1.12 million, Japan $185.26 million and Spain $3.14 million. The government would sign single agreement with Italy, three with Japan and two with Spain. MeanAwhile, one additional agreement with Japan for suspension of $26 million is under negotiation.

Ministry of National Food, SeAcurity and Research presented a summary on refixing of national wheat strategic reserves to the level of 2.00 MMT. In the wake of recent rainfall and flood damages ensuing financial issues of farmAers for the next wheat sowing season, rising local wheat prices and hoarding and smuggling isAsues, the aforementioned quanAtity is insufficient. Therefore, in order to ensure wheat availabilAity across the border and to staAbilize local wheat prices, it was proposed that the quantum of wheat strategic reserves may be retained at the level of 2 MMT. In view of above, the ECC approved the revision of ECC decision for import of 3 MMT of milling wheat and allowed for maintenance of strategic reserves of wheat at the level of 2.00 MMT, includAing a quantity of 0.080 MMT on account of SAARC food bank...