ISLAMABAD, Aug 4: The federal government has proposed exempting the import of one million metric tonnes of wheat from customs duties and taxes to address declining provincial strategic reserves, according to official sources.
The proposal, prepared by the Ministry of National Food Security, also recommends exempting the planned imports from the Provincial Infrastructure Development Cess to reduce procurement costs and ensure timely wheat supplies across the country.
Under the proposal, the Pakistan Agricultural Storage and Services Corporation (PASSCO) would first release its entire stock of one million tonnes of wheat to provincial governments before additional imports are arranged to meet any remaining shortfall.
Provinces Report Declining Strategic Wheat Stocks
Sources said provincial governments have informed the federal authorities that their strategic wheat reserves have declined significantly, prompting the ministry to recommend immediate measures to strengthen food security.
After the release of PASSCO’s available wheat stocks, the remaining provincial requirements would be met through imports, if approved by the government.
Officials estimate the cost of supplying PASSCO’s wheat reserves to the provinces at Rs141 billion, while importing one million tonnes of wheat could cost around $340 million.
Steering Committee Reviewing Wheat Import Plan
The Economic Coordination Committee (ECC) has already constituted a steering committee headed by the deputy prime minister to oversee matters relating to wheat imports and reserve management.
The committee is expected to review the proposed tax exemptions, the release of PASSCO wheat and the import mechanism before final recommendations are placed before the government.
Wheat remains Pakistan’s staple food crop, and decisions regarding strategic reserves and imports play a critical role in maintaining flour supplies, stabilising domestic markets and supporting national food security.
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