ISLAMABAD: In a surprising development which could have political ramifications, the government on Thursday decided to block reduction in wheat and wheat flour prices and increased commissions for oil companies and petroleum dealers on the sale of oil products.
The decisions were taken in a meeting of the Economic Coordination Committee (ECC) of the cabinet presided over by Finance Minister Ishaq Dar. It also approved incentives to attract private sector investment in transmission lines of the power sector.
Informed sources said that due to higher support price for wheat, the rate of Pakistani produce was much higher when compared with international market prices that have been in decline for a few weeks now. The support price has increased from Rs425 per 40kg in 2008 to Rs1,200 per 40kg this year, an increase of about 180 per cent in five years.