ISLAMABAD, Dec 3: The government has decided to export 1.1 million tons of wheat through private sector out of a total surplus of over 2 million tons of wheat.

The decision was taken at the surplus wheat disposal meeting presided over by the Federal Finance Minister Shaukat Aziz on Monday.

The country has over two million tons of surplus wheat which remained undisposed of after Iran declined to import Pakistan, saying it was below standard quality and similarly Iraq cancelled the order midway through, citing the same reasons.

In his recent visit to Islamabad, Iranian Foreign Minister has indicated his country’s interest in the import of Pakistani wheat but details are yet to be worked out.

An Iranian delegation is arriving in the federal capital on Dec 5 to negotiate a fresh contract for the import of wheat.

Khair Mohammad Junejo, Federal Minister for Food and Agriculture, who also attended Monday’s meeting, later told Dawn that the wheat target for the next crop had been set at 20 million tons against 19 million tons of current crop. He said that a total of 0.6 million tons of wheat had been exported through Passco and TCP while another 0.7 million tons export was in the pipeline.

Wheat stocks were reviewed by the meeting as it was told that the stock position in the country was comfortable with expected good crop coming.

It was decided at the meeting that the Board Of Investment (BOI) would prepare a policy paper to encourage private sector for construction of increased storage capacity.

The meeting also decided to encourage Passco and TCP to pick wheat stocks of Sindh and Balochistan. It was further decided to sell 0.100 tons of wheat to the USC.

The meeting was attended among others by ministers for commerce, agriculture, privatisation, chairman of BOI, Deputy chairman of planning commission, provincial ministers of Balochistan, NWFP, Punjab and federal and provincial secretaries.