Govt reduces POL product prices, allows Import of sugar, cotton from India

"This decision is not related to the ECC but the first the decision we have taken, after consultations with the prime minister, we will reduce the prices of petrol and diesel," said Hammad Azhar during a news conference.

"The price of sugar in India is lower than in Pakistan so we are importing from there," he added. However, the price of the commodity in other countries was also high.

"The price of petrol will be slashed by Rs1.5 per litre while the price of diesel will be slashed by Rs3 per litre. We took this decision because now, we have some room due to a change in prices at the international market," he said.

He said the government had received the $500 million tranche from the International Monetary Fund (IMF) adding that the amount would be a "healthy addition" to the country's reserves.

Finance Minister said that the decision to import five hundred thousand tonnes of sugar from India will benefit the poor.

Briefing the media after the meeting of the Economic Coordination Committee (ECC) in Islamabad on Wednesday, the Finance Minister said that the government was formulating all policies in the interest of the people.

Sometimes tough decisions have to be made and sometimes the right decision is a tough decision. The welfare of the common man will be always a priority of the government, he claimed.

Economic Coordination Committee allowed the import of sugar, cotton and yarn from India, which is being seen as an important step in reviving trade between the two neighbouring countries.

A meeting of the Economic Coordination Committee chaired by Finance Minister Hamad Azhar approved the import of sugar from India.

ECC also fixed the wheat support price at Rs1,800 rupees per forty kilograms.

When asked to restore trade ties with India and import goods other than sugar and cotton, Azhar said, "We have to see who benefits from Pakistan."

There were two immediate things in front of us. It has been decided on them. We will look at other things as well, he said.

Regarding sugar prices, he said that there is a difference of 15 to 20 per cent from India.

It may be recalled that trade between Pakistan and India has been suspended since August 2019.