Another extension granted: Punjab, Sindh fail to export surplus wheat stock

Punjab and Sindh governments have failed to export 1.2 million tons of wheat allowed to them by the Economic Co-ordination Committee (ECC) of the Cabinet in spite of an extension of the deadline and a provision of subsidy. Ministry of National Food, Research and Security (MFNSR) reportedly informed the recent meeting of the ECC of the Cabinet presided over by Finance Minister Ishaq Dar that both the provinces could export only 0.280 million tons of wheat against the allowed target of 1.2 million tons.
The ECC meeting dated January 20, 2015 had approved a proposal of Food Ministry with respect to the export of public sector''s surplus wheat stocks with the provincial governments. The federal government had agreed to provide a subsidy of US $55 per million tons on account of transport rebate to Punjab government for 800,000 metric tons wheat export and $45 per metric tons to Sindh government for exporting 400,000 metric tons.
ECC meeting held on 9th February, 2015 also approved export of wheat flour (atta), along with wheat, and directed that the lifting operation be completed by 31st March, 2015 for Sindh and 15th April, 2015 for Punjab. The meeting also decided that export would take place within 30 days of the respective lifting date. However, the lifting period was extended twice by ECC - in its meeting held on 19th March and 10th June, 15 - and export period was extended till 31st July, 2015 for Sindh and Punjab.
On August 12, 2015, MFNSR approached the ECC and stated that Pakistan Flour Mils Association (PFMA) has requested a further extension in export period citing the lengthy and cumbersome procedures and a decline in international price of wheat as major factors for a slow pace of export. The Ministry also stated that Ramazan and Eid holidays also dampened exports. The PFMA has sought an extension in the export period by a further three months and the Ministry endorsed its request. The ECC was requested to allow extension in export period of wheat and wheat flour (atta) up-till September, 30 2015 and was informed that the export process would be completed within 33 days beyond the above date. Extension in export period was allowed by the ECC as requested by PFMA.