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Editorials Print 2020-04-11

After reports on sugar and wheat crises

Prime Minister Imran Khan deserves all the praise for making good on his promise to release two FIA investigation reports he had ordered on the recent sugar and wheat shortages that led to sudden hikes in the price of these essential items of daily use. I
Published April 11, 2020

Prime Minister Imran Khan deserves all the praise for making good on his promise to release two FIA investigation reports he had ordered on the recent sugar and wheat shortages that led to sudden hikes in the price of these essential items of daily use. In a series of tweets on Sunday, he rightly claimed credit for the immediate release of reports "without alteration/tampering", something "unprecedented in Pak's history." Indeed so, especial in view of the fact that the report on sugar implicates important PTI figures and allies in taking huge subsidies on sugar export, causing shortages in the domestic market and subsequently price push. Predictably, the opposition PML-N, facing a raft of alleged corruption cases, saw it as an opportunity to get back at the government. At a hurriedly press conference, PML-N leaders urged the National Accountability Bureau (NAB) to act against those members of the ruling party who were allowed to export sugar whilst its output, according to them, was just enough to meet domestic needs. The practice though was quite common under the previous Nawaz League government.

The reports have also exposed chinks in the ruling party with some blaming PM's close confidante, Jahangir Tareen - one of the principal beneficiaries of subsidised sugar export - of manipulation and he accusing PM's principal secretary of being behind besmirching of his name. However, prima facie, nothing illegal was done. As Federal Minister for Planning and Development Asad Umar explained in a TV programme, the ECC had given the go-ahead to export of surplus sugar, though, without subsidy. Yet the Punjab government decided to subsidise exports and Sindh chose not to follow suit. As per the 18th Amendment, both were within their rights to make their respective decisions independent of the ECC. Pending further investigations, it is premature just yet for anyone to make a judgement on the issue, which seems to be more of a political rather than legal nature. Prominent figures in almost all political parties are known to own sugar mills, and hence acting as a cartel to protect their common interest.

The PM reshuffled his cabinet, a notable change being in the portfolio of Minister for National Food Security Khusro Bakhtiar. One of his close relatives, according to inquiry reports, had "gained benefits in terms of subsidy in export of sugar increasing its price." In related developments, National Food Security Secretary has been replaced. Punjab Food Minister has resigned, and two senior bureaucrats have been made OSD. Also, according to Punjab government spokesman, Tareen has been removed as Chairman of the Task Force on Agriculture "in light of findings of sugar and wheat inquiry report." Tareen though took to social media to offer the clarification that he was never chairman of any task force, challenging people to show him notification of his appointment to that position. He may not have formally held that position, but he was seen participating in various high-level official meetings pertaining to agriculture and other matters. That may be about to change. In one of his tweets, Imran Khan said that before taking action he would await the detailed forensic report by a high powered commission to be presented on April 25, adding "In Sha Allah, after these reports come out no powerful lobby would be able to profiteer at the expense of our public." That report may or may not incriminate those named in the two FIA reports. Still, he will need to take effective steps to prevent politically powerful lobbies from creating distortions in price mechanism.

Copyright Business Recorder, 2020

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