August 15, 2009

Pakistan plans grain storage infrastructure development

The Planning Commission (PC) in Pakistan had held a meeting for the construction of grain storages and cool chain infrastructure.

The meeting discussed the formation of a storage and agro marketing holding company for the implementation of the project. It was proposed that a board of directors would be formed having representation of the federal government, provincial governments and the private sector. The holding company would also receive investment from the private and public sectors.

PC deputy chairman, Sardar Aseff Ahmed Ali, said Pakistan is an agro economy that has a huge potential, as two provinces have grain surplus. Therefore, grain storages, silos, cold storages and electronic marketing are needed to modernise the country's marketing and storage infrastructure in view of the future demand, he said.

Private-public partnership was the priority of the government, and the holding company would have prominent share of private sector. Feedback and approval are needed before a board of directors would be formed.

Six companies are expected to be established on 51:49 private-public equity ratios.

Private sector would take a lead role and would provide the facilities on the basis of needs identified by the provinces.

The holding company would establish 200 agro centres throughout Pakistan with distinct functions of grain marketing, horticulture facilitation, banks for credit, e-marketing, inputs and farm machinery etc.