ISLAMABAD, Sept 12: The United States has agreed to provide 50,000 tons of wheat to Pakistan under a food-aid programme, with shipment likely in October or November, a Food Ministry official said on Friday.

Shahid Hussain Raja, Additional Secretary at the Food Ministry, said he expected the deal to be signed over the next three days.

In May, Pakistan announced plans to import 2.5 million tons of wheat this year for stocks, after the 2007-08 crop fell to 21.8 million tons, short of a target of 24 million tons.

The US wheat is part of a $115 million package agreed under the PL-480 aid scheme, which also includes a component for soybean oil purchases, Raja said.

Raja said the United States had “agreed in principle” to provide wheat worth $100 million on deferred payments under another programme, with details to be worked out next month.

Pakistan has also received an offer from the Canadian Wheat Board for the sale of 500,000 tons of wheat, also on deferred payments, Raja said.

Discussions with the Canadian board had started, he said.

“We have also received a similar offer from the Australian Wheat Board, but ... there is nothing on paper yet,” he said.

The wheat under PL-480 and on the deferred payments programme will help ease pressure on Pakistan’s finances as the government struggles to manage fiscal and current account deficits.

A rising import bill, primarily because of heavy oil payments but also caused by wheat imports, has contributed to a fall in foreign reserves to $9.10 billion, as of Sept. 6, from an all-time high of $16.5 billion in October last year.

The state-run Trading Corporation of Pakistan has imported or contracted to buy about 1.70 million tons of wheat out of the 2.5 million tons target.

Raja said the remaining quantity was likely to be bought under the deferred payments arrangements.—Reuters