Provinces question quality of Passco wheat stocks

Published November 2, 2024
Finance Minister Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee (ECC) at the Finanace division in Islamabad on Nov 1, 2024. — PID
Finance Minister Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee (ECC) at the Finanace division in Islamabad on Nov 1, 2024. — PID

• ECC okays Rs36bn grants, including Rs2bn for VIP aircraft used by president, PM
• Allocates funds for e-passports, Sindh flood relief

ISLAMABAD: At the onset of the wheat sowing season, concerns over wheat quality in the public sector have emerged, with provinces questioning its safety for public consumption.

The issue arose during an Economic Coordination Committee (ECC) meeting chaired by Finance Minister Muhammad Aurangzeb, which also approved about Rs36 billion in supplementary grants, including around Rs2bn for VVIP aircraft used by the president and prime minister.

The meeting was informed that about 550,000 tonnes of imported wheat, carried over since 2021-22, remains with the Pakistan Agriculture Storage and Services Corporation (Passco) at a carrying cost now totalling Rs87bn.

Although imported to meet provincial demands, the wheat remains unused as provinces are reluctant to collect their allocations, leaving Passco to bear the cost.

To address this, Passco proposed supplying wheat to Khyber Pakhtunkhwa and Gilgit-Baltistan on a 50:50 basis of local to imported wheat due to the significant cost difference — imported wheat costs around Rs6,000 per 40kg, nearly double the domestic price.

However, apparently because of the price differential, Khyber Pakhtun­khwa’s food secretary alleged that imported wheat was not fit for public consumption. When asked if the provincial government had got it checked by a laboratory and if it could provide its results, no evidence was presented.

On the other hand, Passco officials claimed that the wheat stocks were up to the mark and regularly fumigated and kept on regular replenishment. Gilgit-Baltistan had an additional price difference of about Rs20 per kg subsidy.

Ministers subsequently recommended quality testing for all wheat stocks before distribution to deficit provinces or entities.

An official statement said the ECC considered a proposal from the Ministry of National Food Security and Research to allocate domestic and imported wheat stocks of Passco among wheat-deficient agencies or regions for the food year 2024-25.

The ECC discussed the issue threadbare and decided that domestic and imported wheat would be allocated and released by Passco based on the allocation ratio decided by the ECC on Feb 1, 2024 — i.e. 50:50 — till full disposal of imported wheat stock. It also mandated quality testing before the wheat is dispatched to the seven wheat-deficit regions as per their demands.

In other business, the ECC approved a Rs252.7 million technical supplementary grant for the Capital Development Authority to ensure civic services at the Prime Minister’s Office and staff colony, using funds reallocated from the Ministry of Housing and Works.

Additionally, Rs1.8bn was granted to the Ministry of Defence for engine overhauls on two VVIP aircraft used by the president and prime minister.

The ECC also approved Rs2.939bn for the Directorate General of Immigration and Passports to purchase two e-passport personalisation systems and six desktop personalisation machines, facilitating uninterrupted public services.

A proposal from the Ministry of Planning and Development for the transfer of Rs30bn, budgeted for FY25 under the “Flood Response Emergency Housing Project”, was also approved. The funds will be allocated to the Sindh government for flood relief, as per the Finance Division’s release strategy.

The ECC granted Rs376m to the National Accountability Bureau under Article 84 of the Constitution for expenditures related to Recovery and Reward Rules 2002. Additionally, Rs226.7m was allocated to support Pakistan’s trade and investment missions in China.

Published in Dawn, November 2nd, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

High troop losses
Updated 24 Dec, 2024

High troop losses

Continuing terror attacks show that our counterterrorism measures need a revamp. Localised IBOs appear to be a sound and available option.
Energy conundrum
24 Dec, 2024

Energy conundrum

THE onset of cold weather in the country has brought with it a familiar woe: a severe shortage of piped gas for...
Positive cricket change
24 Dec, 2024

Positive cricket change

HEADING into their Champions Trophy title defence, Pakistan are hitting the right notes. Mohammad Rizwan’s charges...
Internet restrictions
Updated 23 Dec, 2024

Internet restrictions

Notion that Pakistan enjoys unprecedented freedom of expression difficult to reconcile with the reality of restrictions.
Bangladesh reset
23 Dec, 2024

Bangladesh reset

THE vibes were positive during Prime Minister Shehbaz Sharif’s recent meeting with Bangladesh interim leader Dr...
Leaving home
23 Dec, 2024

Leaving home

FROM asylum seekers to economic migrants, the continuing exodus from Pakistan shows mass disillusionment with the...