The federal government is considering exempting wheat imports from all federal taxes and duties as it moves to restore Pakistan’s strategic wheat reserves, sources familiar with the matter told ProPakistani.
The Ministry of National Food Security has proposed a complete waiver of federal taxes and import duties on wheat shipments. The proposal also includes exemption from the Provincial Infrastructure Development Cess on imported wheat to reduce overall procurement costs.
Sources said the government is planning to import up to 1 million tons of wheat to strengthen strategic reserves after provincial stocks declined significantly.
The government has also proposed releasing the entire 1 million tons of wheat currently held by the Pakistan Agricultural Storage and Services Corporation (PASSCO) to provinces.
Any additional wheat requirement beyond PASSCO’s available stocks will be fulfilled through imports, sources added. Provincial governments have reportedly informed the federal government that their strategic reserves have dropped, increasing the need for fresh procurement.
The cost of supplying PASSCO’s wheat stocks to provinces is estimated at around Rs. 141 billion, while the proposed wheat imports are expected to cost approximately $340 million.
The Economic Coordination Committee (ECC) has formed a steering committee, headed by the Deputy Prime Minister, to oversee wheat import-related decisions as the government works to rebuild strategic reserves and ensure uninterrupted supplies.
