Pakistan has to export 50,000 tons wheat to Afghanistan at subsidised rates despite tense relations between the two countries, sources in Foreign Office told Business Recorder.
The deal would be on official level between Islamabad and Kabul as the former has already prohibited flour export to Afghanistan by private sector, on the recommendations of the Federal Food Committee (FFC). However, wheat was still being smuggled to Afghanistan through different routes, which are not properly monitored by the law enforcing agencies.
Sources said that both countries have re-invented the mechanism to facilitate export to Afghanistan after high level contacts.
They said that the Ministry of Foreign Affairs has sought bids from different private sector parties to dispatch 50,000 tons wheat to Kabul from the stock of Passco in Bahawalnagar and Hafizabad (near Gujranwala).
However, an official commented on this development that "on one hand we are giving wheat to the Afghans at subsidised rates and, on the other, Hamid Karzai is abusing us with the backing of Americans". Earlier, the government was determined to sell wheat or flour to Afghanistan on international rates but at a later stage the decision was changed, with the involvement of top officials.
Sources said that Commerce Ministry had 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 possibility of manoeuvering by the negotiating officials of both countries could not be ruled out, but maximum efforts have been made to ensure transparency in the deals. The Economic Coordination Committee (ECC) of the Cabinet has already decided to continue ban on export of wheat and wheat products, at least for the current year, because of crisis at local level.
TCP has also been directed to ensure import of one million tons wheat before August 31 as the government has achieved 97 percent procurement target.