The Economic Co-ordination Committee (ECC) of the Cabinet has allowed Punjab government to export surplus wheat on Government-to-Government basis aimed at creating physical and fiscal space for the provincial government for fresh procurement, well informed sources told Business Recorder.
ECC of the Cabinet in its meeting held on March 23, 2015 decided to allow export of 0.80 million tons of wheat from Punjab with the transport rebate of $55 per MT and 0.40 million tons from Sindh with the transport rebate of $45 per M/ton. Governments of Punjab and Sindh have also chipped in with the additional rebate of Rs 3,500 and Rs 4,500 per ton. The transactions were allowed only through private exporters.
According to Ministry of National Food Security and Research, higher prices of domestic wheat pose a challenge to the local exporters in their export endeavours. Due to higher stocks of wheat and lower international prices of the commodity, Pakistan would have to make concerted efforts to export surplus wheat stock in order to create physical and fiscal space for the new crop procurement.
A small quantity of surplus wheat had been exported by the private sector despite attractive rebate on export.
The Government of the Punjab apprised the National Food Security and Research and revealed that some countries, such as Tajikistan, had contacted them for importing wheat from Pakistan and requested to solicit permission for export of wheat on Government to Government basis.
The Ministry of National Food Security and Research maintained that the request of the Provincial Government was genuine. The earlier decision of the ECC of January 23, 2015 only allowed export through private sector. Since the main issue ie of transport rebate, had already been taken by the ECC, this issue did not require further consultation. The Ministry of National Food Security and Research endorsed the request for permission for sale of wheat on Government to Government level on the same terms and conditions which had already been approved by the ECC.
The sources said, Tajikistan which contacted Government of Punjab through its representative Shuhrat Olimv, has shown interest in import of 5000 MT wheat from Pakistan.
The sources further stated that Punjab Government had approached the Finance Minister Ishaq Dar for anticipatory approval due to urgency of the matter which he accorded. However, Tariq Mehmood Pasha, Special Assistant to the Finance Minister, wrote to the Ministry of National Food Security and Research to submit a summary to the ECC for formal approval.
The ECC in its meeting held on April 23, 2015 considered the summary submitted by the Ministry of National Food Security and Research on "wheat export permission at Government to Government level" and approved the proposal.
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