Govt Finally Approves Import of 1 Million Ton Wheat Through TCP

Pakistan has finally approved the import of one million tons of wheat through the Trading Corporation of Pakistan (TCP) to meet domestic requirements and curb rising flour and bread prices. Deputy Prime Minister and Foreign Minister Ishaq Dar gave the green light after fulfilling all conditions set by the Economic Coordination Committee of the Cabinet.

These conditions included pre-shipment inspection, securing provincial contributions, and allowing the Finance Ministry to deduct amounts from provincial shares under the National Finance Commission arrangement if necessary. The TCP will conduct the import via an open tender, following its standard procurement procedure. Pakistan's wheat production is equivalent to 28.6 million tons, which should typically suffice to meet domestic consumption needs.

However, supply issues have arisen as private storage hasn't released wheat at the expected rate, with hoarders and middlemen stockpiling supplies in anticipation of higher prices. The government opted for imports to boost market supply and thwart potential price hikes on flour and roti. The decision also comes amid dwindling strategic wheat reserves, with the federal and provincial governments failing to procure enough despite IMF approval and PASSCO's reserves dwindling to near-zero levels.

The steering committee was formed to ensure all pre-import conditions were met before the government proceeded with the acquisition.