May 22, 2008	Thursday	Jamadi-ul-Awwal 16, 1429

ISLAMABAD, May 21: Faced with a staggering decline in wheat output this year, the government on Wednesday allowed private sector to import wheat and withdrew 10 per cent customs duty.

Figures compiled by the National Accounts Committee indicated that wheat production this year would not exceed 21.7 million tons. The country had produced 23.5 million tons of wheat last year and the target for this year had been set at 24 million tons.

Although the withdrawal of customs duty would help the private sector, it would deprive the national exchequer of billions of rupees.

The Federal Board of Revenue (FBR) raised more than Rs4 billion from the import of wheat during the current fiscal year.

The Economic Coordination Committee (ECC), which met here under Prime Minister Yousuf Raza Gilani, reviewed the pace of wheat procurement and domestic prices. The issue was also discussed at a cabinet meeting.