Wednesday, August 3 2005 10:09 Hrs (IST) - World Time -

Islamabad: In a significant policy decision, Pakistan yesterday (August 2, 2005) lifted the ban on sugar import from India, after a gap of four years, as a part of its efforts to stabilise prices in the domestic market.

"The Economic Coordination Committee (ECC) meeting, Chaired by Prime Minister Shaukat Aziz, has allowed the import of sugar from India and the Government-owned State Trading Corporation will import one lakh tonnes of sugar to maintain buffer stocks and stability of prices in the market," Ashfaq Hassan Khan, economic Advisor to Aziz, told reporters here.

Importers would be allowed to opt any route, rail or road via Wagah or by ships via Karachi, for the import of sugar from India.

He said prices of sugar and other commodities have increased manifold in recent weeks and the Government has allowed import of various items from India and other countries.

The Committee acknowledged that the recent decision to permit duty free import of meat, potatoes, garlic, tomatoes and onions via Wagah border had helped ease domestic prices.

Reacting to the development, the Indian Sugar Industry officials in New Delhi described the decision as a win-win proposition for both sides.

Asked about the lifting of the ban, Indian Government officials said they had not received any communication in this regard so far.

Pakistan had banned sugar imports from India and Israel and had been buying sugar from places as far as Brazil, which directly affected the prices.