Pakistan will re-invent the mechanism to facilitate flour export to Afghanistan for which a deal could be struck between the concerned organisations of the two countries; official sources told Business Recorder here on Monday.
They said that the Commerce Ministry has formally issued a Statutory Regulatory Order (SRO) prohibiting flour export to Afghanistan by private sector. The Economic Coordination Committee (ECC) of the Cabinet recently imposed a ban on flour export to Afghanistan after detailed discussion on the prices in the local market as Federal Food Committee (FFC) had proposed to the government to stop wheat flour export to Kabul.
Sources said that Commerce Ministry has directed the Trading Corporation of Pakistan (TCP) to re-write the new terms and conditions for flour export to Kabul, adding that efforts should be made that officials of any of the country, having knowledge of the export indents, should not misuse the mechanism for personal gains.
Officials believe that the possibility of manoeuvring by the negotiating officials of both countries could not be ruled out, but maximum efforts should be made to ensure transparency in the deals, sources said.
According to the proposed mechanism, not yet finalised, TCP would float flour tenders in newspapers, to be procured by the local registered firms in consultation with Afghan government.
After completion of the procedure, flour would be handed over to the concerned officials of Afghanistan. The Cabinet was informed that the wheat and flour situation in the country had substantially improved and, with the arrival of 877,000 tons imported wheat this month, the situation would further ease.
Analysing causes of wheat crisis, Food committee chairman argued that the crisis was the result of exorbitant profit earning by millers due to 'disputed price mechanism' of the provincial governments and inefficient supervision by provincial food departments over supply of wheat and flour.
The food committee was also of the view that the difference between international and domestic prices of wheat was less than of the international prices and it certainly encouraged the tendency of smuggling and hoarding of wheat, sources added.