Prime Minister Shehbaz Sharif on Thursday ruled out allowing the private sector to import wheat for now and "make fat profits", given the extraordinary situation in the wake of devastating monsoon floods and the country's foreign exchange woes.

"It is being said that the federal government is not allowing the private sector to import [wheat]. I will not allow this, I will not allow that the private sector procures it at a price of their choice," the premier asserted while presiding over a National Flood Response and Coordination Centre (NFRCC) meeting in Islamabad.

But saying so, he was quick to clarify that he was neither blaming nor casting aspersions on anyone.

"We are all honourable Pakistanis. All provincial governments are very honourable and they are doing a great job. But there is a system in place, then has been destruction and then there is the difficult matter of foreign exchange," he said, adding that his team in the federal cabinet had worked hard to import the commodity and yet "save billions of rupees".

"We even negotiated with the lowest bidder and taken discounts."

The premier said he was sure that even provincial governments had the capacity to handle the matter, "but this is an emergency".

"And in this emergency, we cannot even afford to spend a dollar extra," he said.

He then went on to question: "But why should I allow the private sector [to import wheat]? Why should I allow the private sector at this point and time?"

The prime minister said the government would have been willing to give permission for wheat imports to the private sector under "normal circumstances" after consultation.

"But I will not allow the private sector to make fat profits, and then use Pakistan's foreign exchange and then sell it to the consumer.

"This will not happen, and this shall not happen," he asserted.

The premier also told the meeting that his cabinet had held a debate and discussion session to address wheat shortage.

He said his team was taking steps to plug the gap created due to the shortage in the last government's tenure and also making arrangements to address the further anticipated shortage due to floods.

"Due to the floods, it is feared that we may not be able to reach our target and arrangements are being made to address that as well," the premier said.

Moonis' allegations

Prior to the prime minister's statement, Pakistan Muslim League-Quaid leader and former federal minister Moonis Elahi, son of Punjab Chief Minister Parvez Elahi, alleged on Wednesday that the federal government had denied the province its share in wheat and wasn't even allowing it to import the crop.

"The federal government under Shehbaz is persecuting the people of Punjab. They have denied us our share in wheat and are not allowing us to import. Wheat crises is being engineered in Punjab," he tweeted, adding that CM Parvez had "written to them hoping better sense will prevail".

The tweet had a photo of a letter addressed to PM Shehbaz, in which CM Parvez informed him of the impending wheat shortage in the province and sought his intervention.

The CM said the provincial government had sought wheat from relevant departments multiple times in recent past, but to no avail. He warned of Punjab's wheat stock likely depleting by February 2023 and urged the premier to approve one million metric tons (MMT) of wheat for Punjab and instruct the Ministry of National Food Security to "immediately provide" 0.3MMT to the province through the Pakistan Agricultural Storage and Services Corporation.

"The remaining requirement may be fulfilled in due course of time as and when needed," he said.

Wheat tender

Traders believe that Pakistan has a substantial import requirement after massive floods in September damaged farmland and crops, sweeping away homes, bridges, roads and livestock.

But the country’s last tender on September 30 ended without a purchase in thin participation due to uncertainty about new tender terms, especially a condition compelling a second quality inspection on wheat unloading in Pakistan in addition to the quality inspection in the port of loading.

On Wednesday, European traders said the state-run Trading Corporation of Pakistan had issued a new international tender to purchase and import 500,000 tonnes of wheat.

The deadline for submission of price offers in the tender is October 26. Shipment is sought in consignments of at least 100,000 tonnes between Nov 13-Nov 18, Nov 21-Nov 26, Nov 29-Dec 4, Dec 7-Dec 12 and Dec 15-Dec 20.

The shipments must be organised so that the wheat purchased arrives in Pakistan by Jan 10, 2023.

The new tender is still believed to have a requirement for wheat quality testing at the port of unloading in Pakistan, traders said. But a requirement in the September tender that ships could not unload in Pakistan before the quality testing in Pakistan was completed has been removed, traders added.

Seeds distribution

During the NFRCC meeting on Thursday, the prime "requested" the provincial government — where the PTI from the opposition in Centre is in power — to agree to the "50-50 formula" devised by the federal government, in collaboration with provinces, for the distribution of wheat seeds.

"Sindh was quick to agree to the formula and Balochistan also devised a model, dividing districts between the provincial government and the NDMA (National Disaster Management Authority).

"But KP and Punjab, despite our requests, did not agree," he expressed regret, adding that he was again requesting both provinces to agree to the formula and accept the seeds.

"There is no politics in this ... We are above our personal likes and dislikes and political likes and dislikes. So I again request all to accept this," he said, adding that if the two provincial governments were not willing to agree, "then don't twist it".

PM Shehbaz continued, "If you don't want it, it is your decision. Then kindly don't twist it. Else, if we will confuse the nation, there will be a big loss."

Earlier in the meeting, the premier quoted a minister as saying that Rs66 billion had been distributed in compensation to flood-affected people and assured that all affected families would receive the compensation amount.

He noted that the number of casualties caused by floods had exceeded Rs1,700 and added that the NDMA had disbursed Rs1 million to each family who had lost a member to floods. The premier said the government had received claims amounting to Rs880m.

Moreover, he said compensation among the injured was also being disbursed and that items procured by the NDMA were also distributed among province as per their requirements. Similarly, relief amounts and items by friendly and brotherly countries were also distributed among the provinces.

The distribution channel, he said, had been "very transparent and good" and announced that winter tents were expected from China in coming days. They, too, will be distributed."