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Govt will need to import 3m tonnes of wheat, warns trade body

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3 years ago

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  • PBF Vice Chairman Ahmad Jawad says looming wheat gap within Pakistan may morph into a full-blown crisis soon.
  • Forum urges provincial food depts to monitor wheat purchase by private sector to avoid hoarding.
  • Says govt could have to import a minimum of 3 million tonnes of grain to stabilise the market.

ISLAMABAD: A trade body on Monday warned of a looming wheat crisis in the country , urging the government to ban wheat exports to stabilise the wheat prices and cater to supply gaps.

“Looming wheat gap within the country currently seems prepared to morph into a full-blown crisis over the approaching months,” said Pakistan Businesses Forum (PBF) Vice President Ahmad Jawad.

PBF urged provincial food departments to monitor wheat purchase by the private sector and curb involvement of middlemen to avoid hoarding. The explanations embodied domestic output inadequacy and billowy international costs within the wake Ukraine issue. The flour costs were probably to rise additional if the govt remained unable to manage imports and take action against hoarders, it added.

The explanations embodied domestic output inadequacy and billowy international costs in the wake of the Ukraine issue. The flour costs were probably to rise additional if the govt remained unable to manage imports and take action against hoarders, it added.

“Prime Minister Shehbaz Sharif has been educated that this wheat harvest is probably going to hover around 26.2 million tonnes against the target of 28.9 million tonnes.” 

The forum said the government may have to import a minimum of 3 million tonnes of grain to stabilise the market and meet the demand of 30.8 million tonnes, despite a carryover stock of 1 million ton.

PBF said that the imports could surpass estimates, pushed by wheat smuggling into Afghanistan, adding that market players had decried wheat imports in the extended quantity. 

“One, the cereal is briefly provided globally owing to a poor harvest, secondly, Pakistan doesn’t have enough bucks to get costly imports with the nation’s foreign currency reserves plunging to $10.5 billion on the widening trade and accounting deficits.”

“What will wheat shortages and costly imports mean for the shoppers,” the group questioned. The flour millers have already raised their costs in Punjab by Rs11 per weight unit supported the open market wheat value of Rs2,200 per 40kg when the termination of official releases.

Punjab had been providing wheat to the millers at the subsidised value of Rs1,950 per 40kg, which was additional slashed to Rs1,600 for the first 20 days of Ramadan.

“The flour inadequacy within the market and also the high value of the artifact could increase food insecurity within the country, particularly within the additional backward and poorer districts of the country, unless the govt proactively ensures its convenience at subsidised rates.”

Jawad deplored wheat shortages and increasing imports, and asked for immediate measures to deal with factors such as water shortage, poor farm management practices, global climate change, and carbamide inconvenience, which had bogged down the agriculture sector.

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Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

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The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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