ECC okays Rs200bn Sukuk bond for retiring circular debt

ISLAMABAD: Encouraged by attractive bids, the government on Tuesday allowed additional wheat exports of 500,000 tonnes and gave a go-ahead to raise Rs200 billion funds from Islamic banks for partial cash settlement of the circular debt now well above Rs1.415 trillion.

The decisions were taken at a meeting of the Economic Coordination Com­mittee (ECC) of the cabinet presided over by Finance Minister Asad Umar.

It rejected approval to the budget of National Telecommunication Corporation due to unsatisfactory explanations to various questions.

The ECC allowed the export of 500,000 tonnes of wheat — over and above 500,000 tonnes export approved on Nov 20, 2018 — on the basis of bids already received in view of good prices to save about one-month time required for fresh bidding. It was explained that the bidding process completed on Jan 11 received “competitive rates (highest at Rs32,759 per tonne) over and above the purchase price of Rs32,500 per tonne”.

Therefore, the meeting was requested by the national food security and research ministry to allow export of the remaining 500,000 tonnes surplus lying with the Pakistan Agricultural Storage and Services Corporation (Passco) in the shape of wheat or wheat products, including flour, suji and maida. Out of this, 400,000 tonnes would be exported through sea route and 100,000 tonnes through land route.