ECC questions plea for additional wheat imports
The Economic Coordination Committee (ECC) of the Cabinet raised serious questions over the data and processes leading to decision making on import and export of essential commodities affecting foreign exchange and consumer prices.
The ECC members were perturbed when Adviser to PM on Finance and Revenue Dr Abdul Hafeez Shaikh, who presided over the meeting, raised questions over the justification for additional import of 1.7 million tonnes of wheat.
The summary moved by the Ministry of National Food Security and Research has sought permission for 1.5m tonnes of import through private sector and about 200,000 tonnes through public sector.
Shaikh asked as to how the relevant ministry reached the conclusion that additional wheat imports were required only weeks after a decision for import of 1.5m tonnes currently in process and on what basis it wanted to allocate quantities between the private and public sector. He also wanted to know what sort of consultations had been made with provinces, the Trading Corporation of Pakistan (TCP) and Pakistan Agriculture Storage and Pakistan Agricultural Storage and Services Corporation (Passco) on the issue.
It emerged that during the course of a meeting at the Prime Minister Office, a private individual had suggested to the PM that Pakistan needed much higher quantities of wheat imports than 1.5m tonnes already allowed. The suggestion was not based on data or a written proposal and as such there was nothing on record.
Okays incorporation of Pakistan Single Window Company
Other ECC members also wanted to know as to who originally made the suggestion for additional imports and why the ECC should take decision for wheat import and why the provinces should not be taking the decision for import and pay for incidentals given the matter pertained to the provincial jurisdiction. The identity of the private person remained unknown to the ECC, a cabinet member told media.
For example, Special Assistant to Prime Minister
Nadeem Babar questioned as to why millers had been discouraged when they tried for procurement from farmers who traditionally used to utilise their stocks to keep their mills running. He also wanted to know how much quantities were in import pipeline, reached the market or under negotiations by importers.
Shaikh deplored that every now and then demands for export and import of wheat, sugar and other essential commodities were brought to the ECC without proper data, homework and market studies even though such knee-jerk moves had devastating impact on prices.
On enquiry, a senior TCP official told participants that such moves and decisions about large quantities of import had a direct bearing on international market as suppliers find desperation on part of buyers and jack up their prices.
He pointed out that the TCP's earlier import orders were booked at $235 per tonne which kept on increasing as authorities announced higher import plans and gradually the final order came in at $274 per tonne within a few weeks.