The government has allowed the export of wheat to the level of over one million tonnes by June, perhaps in a bid to meet the total exports shortfall this year, and in the backdrop of the ever-increasing trade deficit.
The ECC of the Cabinet had allowed, in December last, the export of 500,000 tonnes of wheat through private sector, the quantity of which was later enhanced to 800,000 tonnes. This month, an additional quantity of 500,000 tons has been allowed to be exported, currently being dispatched to India and other countries. Resultantly, the selling price of wheat in the local open market has been registering a constant rise in recent months.
Also, dozens of flourmills have suspended their operations this week, while others are to follow shortly, in the wake of the spiralling price of wheat. The situation has caused serious concern to the general public, already overburdened with high inflation in the country.
Unfortunately, Pakistan is not self-sufficient in wheat, one of the essential and sensitive commodities. Only during the two months of October-November 2006, we imported 100,225 tonnes of wheat. It is a matter of fact that the government allowed, in July 2004 the import of one million tonnes of wheat, whereas in July 2005 duty-free import of wheat and atta (flour) was permitted. Statistics of import of wheat by Pakistan reveal that we have been importing wheat every year, from 2001 to 2006, in significant quantities.
As an illustration, Pakistan imported wheat valuing $238 million in 2004 and $136 million in 2005. In view of the above scenario what is the logic to allow the export of wheat? It will lead to allowing the import of huge quantities of wheat, in July, and that too at a price higher than ours of today? Indeed, the decision is yet another case of misplaced priorities and unplanned policies being implemented that needs review by the government urgently.