Key Takeaways
- The federal government is proposing tax exemptions for wheat imports.
- Up to 1 million tons of wheat are planned for import to address shortages.
- A steering committee, headed by the Deputy Prime Minister, will oversee the process.
The federal government in Pakistan is considering a proposal that would exempt all federal taxes and duties on imported wheat. This move aims to rebuild the country’s strategic wheat reserves, according to sources familiar with the matter.
The Ministry of National Food Security has formally proposed this complete tax waiver for imported wheat. Additionally, an exemption from the Provincial Infrastructure Development Cess is sought to further reduce procurement costs.
Sources indicate that the government plans to import up to 1 million tons of wheat to address current shortages in strategic reserves. The proposal also includes releasing all 1 million tons currently held by the Pakistan Agricultural Storage and Services Corporation (PASSCO) to the provinces.
Any additional wheat required beyond PASSCO’s stocks will be met through imports, as provincial governments have informed the federal government that their strategic wheat reserves are significantly low, necessitating fresh procurement for uninterrupted supplies.
The cost of supplying PASSCO’s wheat stocks to the provinces is estimated at around Rs. 141 billion, while proposed wheat imports are expected to cost approximately $340 million.
To oversee these matters, the Economic Coordination Committee has constituted a steering committee headed by the Deputy Prime Minister. This committee will manage the process of replenishing strategic wheat reserves through these import plans.
