Pakistan : Govt allows import of one million tons of wheat through TCP tender
Pakistan has cleared the import of 1 million tonnes of wheat through TCP tenders after required conditions were met, despite domestic production of around 28.6 million tonnes. The move aims to prevent flour and roti price increases amid depleted strategic reserves and hoarding, following inadequate government procurement.
The federal government has cleared the way to import one million tons of wheat after all prerequisites were met, with the Trading Corporation of Pakistan (TCP) now set to run an open tender and competitive bidding process to secure the shipment, The News reported.
The Economic Coordination Committee (ECC) of the Cabinet had earlier approved the wheat import with specific conditions attached, forming a steering committee to ensure those prerequisites were satisfied before the process could move forward.
The conditions include a pre-shipment inspection, along with provinces either providing their required share of funds upfront or authorising the Finance Ministry to deduct the amount from their NFC disbursement.
Deputy Prime Minister Ishaq Dar confirmed that the government would proceed through TCP-issued tenders, following the corporation’s standard procurement procedure.
Pakistan’s total wheat output stood at around 28.6 million tons this year, a figure officials consider adequate to cover domestic needs.
Despite this, official data suggests wheat stocks exist in the country but have been withheld by hoarders and middlemen anticipating a sharp price spike they could exploit.
The import decision is being framed as a stopgap measure to prevent a jump in flour and roti prices while that supply remains locked away.
The situation traces back to a procurement failure by both federal and provincial governments, who did not buy wheat despite having IMF clearance to do so.
As a result, PASSCO’s strategic reserves, once at 1.8 million tons, have been drawn down close to zero once provincial demands are factored in.
Faced with this shortfall, the ECC opted to import a million tons of wheat, while setting up the steering committee to spread accountability for the process across stakeholders.
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Source : Profit Pakistan Today
