ISLAMABAD, Dec 14: The government has imposed 15 per cent regulatory duty on export of wheat flour to avert the possible shortage of the commodity in the country.

Officials told Dawn on Tuesday that the decision was taken by the Economic Coordination Committee (ECC). It was observed that flour - a product of the wheat imported at a subsidised rate - was being exported.

With subsidy, the cost of imported wheat was higher than the wheat flour being exported at lower prices, which resulted into a loss to the national kitty. The government had already banned the export of wheat because of its shortage to meet the local demands.

According to the officials, around 0.2 million tons of wheat flour was exported since May 2004 to various neighbouring countries including Afghanistan. The government has also allowed free import of wheat by any person subject to the condition that the import was made in conformity with the specification given by the ministry of food, agriculture and livestock.

According to the officials, some people have shown interest in the import of wheat. With the levy of regulatory duty, it was feared that smuggling of the wheat flour to Afghanistan would get momentum through the porous border. The levy might also result in shortage of the wheat flour in the two provinces, NWFP and Balochistan that border Afghanistan.