Pakistan Wheat Traders Demand End to State-Managed Imports

Wheat traders in Pakistan are calling for an end to state-managed imports and urging the federal government to allow private sector imports without subsidies, citing past losses of billions of rupees to the national exchequer.

Muzammil Chappal, Chairman of the Cereal Association of Pakistan (CAP), said that allowing private sector imports would avoid financial burden on the national exchequer and stabilize domestic wheat and flour prices. He noted that during FY23-24, the private sector imported 2.7 million tonnes of wheat without using public money or subsidies.

Chappal pointed out that past experiences have shown how state-managed procurement via public entities has led to severe financial losses to the national exchequer and billions of rupees in financing. He also mentioned that a huge stockpile of approximately 450,000 tonnes of three-year-old wheat is still in the country.

CAP has proposed that under Phase-I, the government should grant immediate permission for the private sector to import 2 million metric tons of wheat, while Phase II would allow an additional 2 million metric tons subject to market conditions and supply requirements. They have requested the federal government to maintain a hands-off approach and honor its commitment to deregulation.