November 24, 2003

Pakistan Withdraw Import Duty On Wheat

Pakistan's Economic Coordination Committee (ECC) of the Cabinet has withdrawn import duty on wheat.

There was 25% import duty on wheat. The ECC meeting was conducted last Thursday, under the chairmanship of Finance Minister Shaukat Aziz, reviewed the wheat situation in the country and decided to bring down the duty to facilitate imports, if the situation warrants for it. "The SBP (State Bank of Pakistan) and the provincial governments have been asked to review the stock position of wheat, an official statement said, adding that the government will continue to monitor the wheat situation very closely and will take every decision to maintain supply.

The meeting decided to follow a wait-and-see approach on the issue of wheat imports, but allowed a major cut in duty to ensure that black marketers do not take advantage of the situation.

"The total wheat production was sufficient for the consumption requirement of the country and both the federal and provincial governments will insure the adequate supply of wheat in the country," the statement added.

The wheat production estimates, particularly in Punjab, were extremely controversial last year. The last minute efforts to jack-up wheat statistics in May-June 2003 helped the government to announce a higher GDP growth figure of 5.1%, which was expected to be in the range of 4.9% before the incorporation of higher wheat estimates.