The Pakistani government may allow the private sector to import wheat of any origin with maximum orders in order to curb surging wheat prices in the domestic market, according to The News.

A senior official of the Ministry of Food, Agriculture and Livestock, told The News that a relevant SRO regarding permission for the private sector would soon be issued for the importing of wheat to meet local demand.

The Trading Corporation of Pakistan (TCP) plans to import 2.5 million tonnes of wheat in the 2008-09 season, and has so far contracted 1.75 million tonnes of red wheat.

The official said they have received some queries from private importers as international grain prices have dropped to the levels of 2005, which would allow them to earn a reasonable profit margin.

Wheat prices are around US$200 per tonne and after including freight charges of US$50, its cost is around Rs20 per kg in Karachi. However, its price in the local market is around Rs 25 per kg, thus a profit of Rs 5 for the imported grain, the official said.

The official said the importers would be allowed to import wheat according to local requirements.

Private sector imports will improve the supply situation in Sindh and Balochistan, and also lessen burden on Punjab, according to the official.