Islamabad: Pakistan on Friday allowed the import of nearly $300 million worth of urea and wheat through open tenders after efforts to import through government-to-government agreements to meet expected shortages in the coming months failed. Gone. Apart from approving the tender to import 380,000 tonnes of wheat at $373 per tonne, the Economic Coordination Committee (ECC) of the Cabinet also authorized the state trade agency to explore options for importing another 800,000 tonnes.
The cost of 380,000 tonnes is $142 million, while the total cost of 800,000 tonnes will be determined after deals are finalized. The ECC, headed by Finance Minister Ishaq Dar, allowed the release of 1 million tonnes of imported wheat from government warehouses to meet the daily requirements of the provinces. The ECC allowed the Trading Corporation of Pakistan (TCP) to sign a contract with the lowest bid of $520 per tonne for the import of 300,000 tonnes of urea. TCP launched an international tender on 19 October 2022 and it was opened on 26 October. Among the three bidders, the lowest counter bid was $520 per ton, which would cost the country $156 million.
Both the commodities are in short supply which may affect the country’s food security if not imported in time. The government tried to import urea from Azerbaijan, China, Saudi Arabia and Iran under government-to-government agreements on deferred payments. But no nation showed interest. The Ministry of National Food Security and Research has recommended immediate import of urea to ensure that there is no shortage of the input required for wheat sowing. The ECC on October 26 approved the award of the 6th International Wheat Tender 2022, opened for 380,000 tonnes at $373 per tonne. The government has already imported about 1 million tonnes of wheat but still faces the challenge of meeting the country’s needs, if 1.6 million tonnes are not imported before the next planting starts in April.
Prime Minister Shahbaz Sharif rejected a proposal to allow the private sector to import 800,000 tonnes of wheat due to limited foreign exchange reserves. The Ministry of National Food Security on Friday presented a summary of the government’s import of 800,000 tonnes of wheat through TCP. The ECC allowed TCP to import 3 million tonnes of wheat in May 2022 and directed to formulate import procedures. Procedures were drawn up and TCP was allowed to import 1 million tonnes of specified milling wheat through international tender. Later, public wheat stocks were confirmed and reported to be 2.6 million tonnes instead of the actual shortfall of 3 million tonnes.
Therefore, as per the decision, TCP was allowed to import only 800,000 tonnes out of the remaining 1.6 million tonnes on open tender as well as government-to-government basis. The ECC approved the proposal and allowed the TCP to arrange for the import of the remaining 800,000 tonnes through open tender or G-to-G arrangements before the new crop is harvested. However, the meeting was told that efforts to import wheat from Russia under the G2G agreement have been futile. The cabinet body was warned that if additional wheat is not imported immediately, there could be a shortage of the commodity by March next year. The Pakistan Agriculture Storage and Services Corporation (PASCO) has 3.5 million tonnes of wheat in stock, which would turn negative if additional provincial demand is met without further imports.
The Ministry of National Food Security has submitted another summary regarding the requests of food departments of Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan for additional supply of imported wheat from Pasco stocks. Considering the urgent demand of the provinces and subject to the approval of the respective provincial cabinet, the ECC allowed the supply of 1 million tonnes of imported wheat from the Pasco stock. Punjab will get 500,000 tonnes against an additional demand of 1 million tonnes. 300,000 tonnes will be given to Sindh and 200,000 tonnes to Khyber Pakhtunkhwa. But the provinces have to pay the full price and incidental charges to Pasco.
Additionally, 40,000 tonnes of local and imported wheat can be supplied to Balochistan in the ratio of 50:50 with full Pasco value and incidence. Ministry of Commerce in Import Policy Order 2022 presented a summary for suspension of import conditions related to import of wood/timber. The ECC directed the Department of Plant Protection (DPP) of the Ministry of National Food Security to review the conditions for import of wood and timber and bring them in line with international best practices so that imports are unnecessary and harmful. Cannot be targeted. complex procedure.
However, to address the immediate concerns of the timber/timber industry, the ECC approved a proposal to suspend the implementation date of the Import Policy Order 2022 on import of timber and timber to 31 March 2023. A grant of Rs 334 million in the current financial year 2022-23 in favor of the Ministry of Home Affairs enables the Frontier Constabulary to set up an anti-rights unit of 2,000 personnel.
