ECC allows marketing of Ethanol blend as motor fuel

[Naveed Yaseen]

By Sajid Chaudhry
ISLAMABAD: The Economic Coordination Committee (ECC) of the Federal Cabinet has decided to allow marketing of Ethanol-10 as motor vehicle fuel on trial basis at PSO stations.

The ECC met under the chairmanship of Shaukat Tareen, Adviser to PM on Finance and Economic Affairs at the Prime Minister’s Secretariat. The decision to allow marketing of E-10 was taken to reduce reliance on imported petroleum products, to the extent possible through use of appropriate indigenous blendable substitutes. Anhydrous Ethanol (Ethanol with less than 1% water) is one such product, which can be blended with gasoline in varying proportions. Most gasoline vehicle engines operate well with mixtures of 10 percent Ethanol E-10. The ECC further decided that Ethanol-10 would be treated as motor vehicle fuel.

ECC deferred the decision on the agriculture ministry’s proposal to lift ban on the export of wheat and fix the quantity for export purposes. ECC referred the proposal for export of wheat products to Afghanistan to the federal cabinet, which is to meet today (Wednesday).

ECC has allowed import of 0.2 million tonnes sugar to meet the country’s demand in next four months, official sources informed.

According to the official sources, the ECC imposed ban on issuance of licenses for setting up of Liquefied Petroleum Gas (LPG) marketing companies in the country.

The ECC also allowed OGDC to supply 20-25 MMCFD gas from their Bahu Field to M/s Fauji Kabirwala Power Company Limited so that OGDCL could meet its contractual obligation under existing GSA. The ECC approved issuance of the government’s guarantee of Rs 1 billion for the Pakistan Textile City, Karachi for a period of two year. It may be noted that Pakistan Textile City is located in the eastern Zone of the Port Qasim Authority, Karachi on 1250 acres. It is a joint venture of Government of Pakistan, public sector and prime financial institutions. The land for the Textile City was acquired from Port Qasim Authority (PQA), and its leveling and grading is approaching completion stage. The ECC also allowed Export Processing Zone Authority (EPZA) to provide 6 acres of land on rent sharing basis for a period of five years and allowed all permissible EPZA incentives to M/s Progressive International Party Ltd. of Australia for establishment of EPZA Tech Power Project.

The ECC was informed that this year Pakistan is likely to reap a very good crop of wheat, now projected at 24 million tones. Consequently, after two consecutive years of acute shortage of wheat, Pakistan has finally been successful in breaking out of the vicious circle of low wheat production. While taking stock of price situation of various daily use commodities, the meeting decided that sugar hoarding would not be allowed at any cost so that the price of sugar remains within the reach of common man. The meeting also decided that the government would reduce State Bank borrowings to control inflation in the country.

http://www.dailytimes.com.pk/default.asp...2009_pg5_1