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The Economic Coordination Committee (ECC) of the Cabinet which is scheduled to meet on Tuesday (today) with Finance Minister Asad Umar in the chair is likely to approve modalities of Ministry of National Food Security and Research for export of 0.5 million tons of wheat/wheat products, well-informed sources told Business Recorder. On November 20, 2018, the ECC decided to export surplus wheat/ products of the public sector which was subsequently ratified and conveyed by the Cabinet Division on November 23, 2018.

The ECC on November 20, 2018 had decided to allow export of 0.5 million tons of wheat/ wheat products by PASSCO (0.10 million tons) and Governments of Punjab and Sindh (0.40 million tons to be divided in proportion to their indicated availability for export) with the direction that the freight support of export of wheat in respect of PASSCO will be paid by the federal government, while provincial governments of Punjab and Sindh may bear freight support charges for their respective exports.

The sources said ECC also directed the Ministry of National Food Security and Research to formulate detailed modalities for the export of surplus wheat in the country, in consultation with the Ministries of Finance and Commerce and submit the report in the next ECC meeting.

Ministry of National Food Security and Research, in its modalities suggested that the provincial governments and PASSCO shall process export of wheat by placing the tenders to the tune of 0.5 million tons of surplus wheat with the following break up: (i) PASSCO-0. 10 million tons; (ii) Punjab 0.25 million tons; and (iii) Sindh 1.5 million tons.

The sources further stated PASSCO and Governments of Punjab and Sindh are allowed to export 0.50 million tons of wheat and wheat products (flour/Aata, fine, Suji and Maida). The successful bidder will provide a performance guarantee of 120 per cent of the amount of difference between the issue price of wheat (to flour mills) and the bid price, which may be released on submission of export documents within 90 days. The export of wheat and wheat products should be completed before April 30, 2019, while the export process should be completed up to June 30, 2019, in order to facilitate exporters for completing their codal formalities.

MNFS&R has also decided that freight support for export of wheat in respect of PASSCO will be paid by the federal government, while Governments of Punjab and Sindh will bear the freight support charges for their respective exports.

In compliance with the ECC decision, Ministry of National Food Security and Research had forwarded the draft modalities to Ministry of Finance and Commerce for obtaining their consent. Ministry of Commerce endorsed the modalities drafted for export of surplus wheat / products as proposed by the Ministry of National Food Security and Research. However, Finance Division agreed to the proposed modalities subject to the condition that modalities would be in conformity with PPRA Rules, and deliberations on the export allocation made for PASSCO and Governments of Punjab and Sindh and quantum of freight support to be provided to PASSCO from the federal government.

After completing the procedural obligations of the ECC of the Cabinet, Ministry of National Food Security and Research issued a notification on December 12, 2108 and circulated to all the stakeholders, including Ministries of Finance and Commerce, Governments of Punjab and Sindh, PASSCO, State Bank of Pakistan and Federal Board of Revenue for appropriate action at their ends.

Copyright Business Recorder, 2019


the author

I did graduation from the Government Murray College Sialkot and MSc in Psychology from the University of Punjab. I am in journalism since 1990. I worked in Daily Nawa-i-Waqt as sub editor and staff reporter in Daily Pakistan and Daily Din prior to joining Daily Business Recorder. I have been associated with this newspaper since 2000 as staff reporter. Energy Sector, Commerce / Trade and Industries are key areas of my interest. I have also the credit of exposing number of scams like Rental Power Plants (RPPs), LNG, sugar import, etc.

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