On the request of the United Nations World Food Program (WFP), Pakistan has reserved 120,000 tons of wheat for Afghanistan from PASSCO’s imported wheat stock at the most recent import price, considering the situation in the brotherly neighbor and on humanitarian grounds.
In this regard, the federal government has decided to sell 120,000 MT of wheat to the UN World Food Program (WFP) for Afghanistan at full import cost in US dollars rather than Pakistani rupees or any other currency.
Read more: Streamlining coal import and transit trade: Pakistani delegation visits Kabul
The Economic Coordination Committee (ECC) was also informed that on December 1, 2021, this forum permitted WFP to purchase extra 175,000 MT of wheat for Afghanistan, as well as lift the ban on the export of wheat flour.
On December 7, 2022, the Federal Cabinet ratified the ECC’s decision. Passco allocated 140,000 MT of wheat to WFP in accordance with the Cabinet’s decision. However, due to a variety of factors, WFP was only able to transport 28,521 MT of wheat to Afghanistan.
Passco claims that it has enough wheat stockpiles to satisfy the World Food Programme’s need for 120,000 MT of wheat flour to Afghanistan in 2022-23 due to imports and an ample supply of locally sourced wheat. The Finance Division contended that the WFP’s required demand could be supplied using Passco’s imported wheat stock at full cost in foreign currency, preferably US dollars.
The Ministry of National Food Security and Research stated that, given the enough wheat stock held by PASSCO and the country’s local demand and supply situation, the WFP’s request for the purchase/reservation of 120,000 MT of wheat from Passco’s imported wheat stock may be granted at full cost. The wheat would be provided to Afghanistan by WFP, subjected to a relaxation of the ban on wheat flour exports to the extent of the current plan of 120,000 MT of wheat.
Moreover, the amount of wheat supplied, as well as the cost and incidentals, would be charged in foreign currency, ideally US dollars.
Following a brief discussion, the ECC approved the Ministry of National Food Security and Research’s proposal, with the stipulation that the selling price should reflect the most recent price of US $ 515/MT CFR Karachi plus incidental expenses.