Wheat Import Decision
A detailed report has unveiled the resistance from the Punjab and Sindh governments against the decision of Prime Minister Anwaarul Haq Kakar-led caretaker administration in 2023 to import wheat through the private sector.
In a meeting convened by the Minister of National Food Security and Research on December 29, 2023, it was disclosed that wheat cultivation spanned 22.14 million acres nationwide.
Despite the current wheat stock standing at 2 million metric tons and a shortfall of 40.2 million metric tons, objections arose from the Food Secretaries of Punjab and Sindh regarding the import of 1 million metric tonnes sanctioned by the federal government.
Secretary Sindh raised concerns over a decrease in wheat prices from Rs4600 to Rs4400 per maund due to imports, while Secretary Punjab advocated for a post-Ramadan package evaluation before proceeding with imports.
Further complicating matters, Punjab’s Food Secretary requested a halt to wheat imports on March 25, 2024, citing an anticipated surplus in production.
A subsequent meeting in Islamabad on March 28, 2024, saw the Federal Finance Minister criticize the $900 million private sector wheat import, citing strain on forex reserves. Moreover, apprehensions arose regarding a Russian vessel unloading wheat without authorization.
In the midst of this debate, the Kissan Ittehad announced nationwide protests starting May 10 in response to the government’s failure to procure wheat from farmers.
Chairman Khalid Mahmood Khokhar condemned the government’s prioritization of wheat importers over local farmers, highlighting a Rs. 400 billion loss suffered by farmers due to low wheat prices.
Former caretaker PM Anwarul Haq Kakar, while expressing willingness to cooperate with any investigation committee regarding alleged irregularities in wheat import, defended his administration’s decision, emphasizing its commitment to safeguarding Pakistan’s financial resources.
These events underscore the contentious nature of wheat imports amid domestic production and economic concerns, with stakeholders grappling to find a viable solution to the ongoing crisis.
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