Punjab agriculture minister Malik Ahmad Ali Aulakh has said that wheat production target for the Rabi season 2010-11 has been set at 25 million ton, some 1.5 million ton above the assessed national food requirement at 23.5 million ton.

With the prices of sugar skyrocketing, the Council of Common Interests agreed on Monday to a proposal of the federal government to end the role of the Trading Corporation of Pakistan in import and supply of sugar, giving a free hand to millers and wholesalers to determine its price. The move, according to an official, was in compliance with an IMF condition to end subsidy on food items. This means the government will no longer provide subsidised sugar to consumers through utility stores or open market.

The Finance Minister said that IMF has linked the release of next tranche of the $11.3 billion Stand-By Arrangement (SBA) with concrete progress on RGST and reforms in the power sector. Sources said that the Finance Minister told the meeting that introduction of RGST Bill in the Parliament was 'must' to ease the concern of the lending agency prior to the next round of talks after the Pakistan Development Forum.

"Ministries and Divisions have, therefore, lodged strong protest with the Planning Commission," sources said, adding that the staff who were working on different development projects are no longer being paid. Following the direction of Finance Division, the Planning Commission has proposed to slash Rs 70 billion federal component of PSDP 2010-11 due to financial constraints in a summary moved to Prime Minister in October 2010 for formal approval. "But Prime Minster Secretariat has not conveyed any formal decision in this regard," sources added. The government had earmarked Rs 280 billion as federal component for current financial year's PSDP. The Planning Commission has also recommended cancellation of Rs 89.27 billion budgetary allocation for around 258 new projects (with total cost of over Rs 698.38 billion) from the current financial year's PSDP and diverting these funds to rehabilitation of the flood-hit areas.

Pakistan Cotton Ginners Association (PCGA)'s Chairman Chaudhry Masood A Majeed and Vice Chairman, Nawab Shehzad Ali Khan opposed the imposition of RGST terming it disastrous for ginners as well as cotton growers. Government should not implement this unjust tax otherwise industry will be forced to close its factories.

A extraordinarily panicked newly-elected central Chairman of Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) Ejaz Khokhar has therefore, suggested revival package including capping the utilities prices for industry, suspension of Export Development Fund (EDF), collection forthwith, abolition of taxes (including Reformed General Sales Tax), special mark up rate and smooth flow of raw materials to the textile ancillary industry.