Pakistan says Iran wheat deal to be finalised within weeks

Published July 17, 2013
Food imports are not affected by Western sanctions on Iran.    — File Photo
Food imports are not affected by Western sanctions on Iran. — File Photo

ISLAMABAD: Pakistan will finalise a long-delayed deal to export $9 million worth of wheat to Iran within weeks, a finance ministry spokesman said on Wednesday.

Pakistan is negotiating to send 100,000 tonnes of wheat in partial payment for electricity supplies from Iran.

Pakistan owes Iran $53 million for the imports but its cash-strapped state power company has no means to pay.

Talks are underway among Pakistani ministries to settle the finer details of the deal, said finance ministry spokesman Rana Assad Amin.

He said he expected the talks to be wrapped up within a few weeks.

The wheat shipment was due to be delivered to Iran in mid-February but has been repeatedly delayed by wrangling between the two nations and preparations for Pakistan's May 11 election.

Food imports are not affected by Western sanctions on Iran.

But sanctions on oil exports have dried up the country's cash flow, hindering its ability to pay for much of the food it imports.

Pakistan is battling a chronic energy shortage that has eviscerated industry and sparked public outrage.

The government insists that companies sell power for less than the cost of production, leaving them unable to pay for fuel or imports.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Four hundred seats?

Four hundred seats?

The mix of divisive cultural politics and grow­th-oriented economics that feeds Hindu middle-class ambition and provides targeted welfare are key ingredients in the BJP’s political trajectory.

Editorial

Weathering the storm
Updated 29 Apr, 2024

Weathering the storm

Let 2024 be the year when we all proactively ensure that our communities are safeguarded and that the future is secure against the inevitable next storm.
Afghan repatriation
29 Apr, 2024

Afghan repatriation

COMPARED to the roughshod manner in which the caretaker set-up dealt with the issue, the elected government seems a...
Trying harder
29 Apr, 2024

Trying harder

IT is a relief that Pakistan managed to salvage some pride. Pakistan had taken the lead, then fell behind before...
Return to the helm
Updated 28 Apr, 2024

Return to the helm

With Nawaz Sharif as PML-N president, will we see more grievances being aired?
Unvaxxed & vulnerable
Updated 28 Apr, 2024

Unvaxxed & vulnerable

Even deadly mosquito-borne illnesses like dengue and malaria have vaccines, but they are virtually unheard of in Pakistan.
Gaza’s hell
Updated 28 Apr, 2024

Gaza’s hell

Perhaps Western ‘statesmen’ may moderate their policies if a significant percentage of voters punish them at the ballot box.