Provinces question quality of Passco wheat stocks

• ECC okays Rs36bn grants, including Rs2bn for VIP aircraft used by president, PM
• Allocates funds for e-passports, Sindh flood relief
ISLAMABAD: At the onset of the wheat sowing season, concerns over wheat quality in the public sector have emerged, with provinces questioning its safety for public consumption.
The issue arose during an Economic Coordination Committee (ECC) meeting chaired by Finance Minister Muhammad Aurangzeb, which also approved about Rs36 billion in supplementary grants, including around Rs2bn for VVIP aircraft used by the president and prime minister.
The meeting was informed that about 550,000 tonnes of imported wheat, carried over since 2021-22, remains with the Pakistan Agriculture Storage and Services Corporation (Passco) at a carrying cost now totalling Rs87bn.
Although imported to meet provincial demands, the wheat remains unused as provinces are reluctant to collect their allocations, leaving Passco to bear the cost.
To address this, Passco proposed supplying wheat to Khyber Pakhtunkhwa and Gilgit-Baltistan on a 50:50 basis of local to imported wheat due to the significant cost difference — imported wheat costs around Rs6,000 per 40kg, nearly double the domestic price.
However, apparently because of the price differential, Khyber Pakhtun­khwa’s food secretary alleged that imported wheat was not fit for public consumption. When asked if the provincial government had got it checked by a laboratory and if it could provide its results, no evidence was presented.
On the other hand, Passco officials claimed that the wheat stocks were up to the mark and regularly fumigated and kept on regular replenishment. Gilgit-Baltistan had an additional price difference of about Rs20 per kg subsidy.
Ministers subsequently recommended quality testing for all wheat stocks before distribution to deficit provinces or entities.
An official statement said the ECC considered a proposal from the Ministry of National Food Security and Research to allocate domestic and imported wheat stocks of Passco among wheat-deficient agencies or regions for the food year 2024-25.
The ECC discussed the issue threadbare and decided that domestic and imported wheat would be allocated and released by Passco based on the allocation ratio decided by the ECC on Feb 1, 2024 — i.e. 50:50 — till full disposal of imported wheat stock. It also mandated quality testing before the wheat is dispatched to the seven wheat-deficit regions as per their demands.
In other business, the ECC approved a Rs252.7 million technical supplementary grant for the Capital Development Authority to ensure civic services at the Prime Minister’s Office and staff colony, using funds reallocated from the Ministry of Housing and Works.
Additionally, Rs1.8bn was granted to the Ministry of Defence for engine overhauls on two VVIP aircraft used by the president and prime minister.
The ECC also approved Rs2.939bn for the Directorate General of Immigration and Passports to purchase two e-passport personalisation systems and six desktop personalisation machines, facilitating uninterrupted public services.
A proposal from the Ministry of Planning and Development for the transfer of Rs30bn, budgeted for FY25 under the “Flood Response Emergency Housing Project”, was also approved. The funds will be allocated to the Sindh government for flood relief, as per the Finance Division’s release strategy.
The ECC granted Rs376m to the National Accountability Bureau under Article 84 of the Constitution for expenditures related to Recovery and Reward Rules 2002. Additionally, Rs226.7m was allocated to support Pakistan’s trade and investment missions in China.
Published in Dawn, November 2nd, 2024