ISLAMABAD: Perturbed over continuously skyrocketing wheat flour prices, the government on Wednesday asked Punjab to start releasing its wheat stocks in the market. The government is also mulling the commodity’s imports in public sector.

Informed sources said an inter-ministerial meeting — called on the orders of Prime Minister Imran Khan and participation from all four provinces — firmed up a set of immediate steps for approval of the federal cabinet.

Sources said the government had reports that middlemen were hoarding this year’s wheat produce owing to higher international prices, lower domestic prices and tight demand-supply situation in the country.

It was viewed that release of wheat from Punjab’s stocks and supply by Pakistan Agricultural Storage and Services Corporation (Passco) to Khyber Pakhtunkhwa and Balochistan will compel hoarders to offload the grain.

The meeting, presided over Finance Adviser Dr Abdul Hafeez Shaikh, was informed that the government had received encouraging response from the private sector in the shape of formal applications to take benefit of government’s decision to allow duty and tax free import of wheat. However, the private sector may not be able to achieve the 2.5 million tonnes import target set for the current season.

Chief Secretary Punjab Agha Jawad Rafique informed the federal cabinet members that the province was ready open up its stocks but these would also need to be replenished on a proportionate basis. He also advised that the government should not put a cap on wheat import but must keep close monitoring of the situation on monthly basis.

Surprisingly, the Sindh government reported there was no problem in the province as the government had almost achieved the procurement target. The province has so far picked up about 1.3m tonnes against 1.4m tonnes procurement target set by the federal government.

Published in Dawn, June 18th, 2020