The federal government decided on Tuesday to import up to one million metric tonnes of wheat and is preparing to exempt all taxes and duties on the imports.
The sources divulged that the Ministry of National Food Security has sought approval for tax and duty exemptions on wheat imports, adding that a proposal has also been made to exempt the Provincial Infrastructure Development Cess.
The sources said that the government has decided to import up to one million metric tonnes of wheat to meet the country's requirements.
A proposal has also been made to supply all one million tonnes of wheat held by the Pakistan Agricultural Storage and Services Corporation (Passco) to the provinces. The remaining provincial requirements would then be met through imported wheat, according to sources.
The sources estimated the cost of the wheat held by Passco at Rs141 billion. The estimated cost of importing wheat could reach $340 million.
The provincial authorities have informed the federal government that strategic wheat reserves have fallen significantly, according to sources.
The Economic Coordination Committee (ECC) has already formed a steering committee, headed by Deputy Prime Minister Ishaq Dar, to oversee wheat imports.
In a separate development, Deputy Prime Minister Ishaq Dar chaired a meeting by video link to review the wheat situation.
The meeting was attended by the chief secretaries of Punjab, Balochistan and Khyber Pakhtunkhwa, while Sindh Food Minister Makhdoom Mehboob Zaman joined through video link.
The Sindh food minister briefed the meeting on wheat reserves, demand, supply and flour prices in the province.
He said the Sindh government was taking effective measures to prevent wheat hoarding and maintain stable flour prices. He also said close coordination between the federal government and all provinces was essential to ensure an uninterrupted supply of wheat across the country.
