ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet headed by Prime Minister Advisor on Finance and Revenue, Abdul Hafeez Shaikh reportedly requested the Ministry of National Food and Security to provide cogent reasons for bringing a summary to enhance wheat allocation for Army by over 113 percent to 190,000 MT from 89,000 MT, well informed sources told Business Recorder. The wheat allocation has been enhanced from stored wheat of Pakistan Agricultural Storage and Services Corporation (PASSCO) at a time when the country is facing wheat and flour crisis due to which prices of the commodities are out of control for the public. The ECC approved the proposal on July 22, 2020, which was ratified by the federal cabinet on July 28, 2020.

Ministry of National Food Security and Research supplied wheat to the Pak Army through PASSCO on payment basis. For the purpose, Ministry of National Food Security and Research had already allocated 89,000 MT of wheat. Pak Army had requested for enhancement of its allocation from 89,000 M tons to 190,000 M tons which was supported by PASSCO.

Wheat would be lifted by Pak Army from PASSCO as per its needs on payment at Rs-35,000.00 per M tons + incidental charges Rs 6.870.6 total Rs 41,870.6 per M tons.

Ministry of National Food Security and Research requested the ECC of the Cabinet to enhance wheat allocation of Pak-Army from 89,000 M tons to 190,000 M tons from PASSCO on payment basis for the year 2020-21.

During the ensuing discussion, the ECC observed that no justification had been given in the summary for the proposed enhancement of wheat allocation of Army from 89,000 MT to 190,000 MT which was more than double the previous allocation.

ECC pointed out that there must be cogent reasons for the proposed increase in wheat allocation which needs to be spelled out.

The Ministry of National Food Security suggested that allocation to Pak Army may be enhanced from 89,000 M tons to 150,000 M tons.

After brief discussion on the summary of Ministry of National Food Security and Research regarding demand of wheat for Pak Army for the FY 2020-2021 (April 2020 to March 2021), it was decided to enhance wheat allocation of Pakistan Army from 89,000 M tons to 150,000 M tons from PASSCO in the current year 2020-21 on payment basis. For any further increase, proper justification may be sought.

Copyright Business Recorder, 2020