Pakistan plans negotiations with Afghanistan over wheat export

Wants to send surplus produce to neighbouring country

ISLAMABAD: The commerce ministry has decided to send a high level delegation comprising officials and businessmen to Afghanistan to address issues that are responsible for Pakistan losing its traditional flour (Atta) export market in Afghanistan.

The decision was taken at a high level meeting on Tuesday, which was attended by officials from Ministry of National Food Security and Research, Ministry of Finance, Federal Board of Revenue (FBR), Ministry of Science and Technology and representatives of provincial food departments of Sindh and Punjab.



The meeting was convened on the request of Punjab government, which had pointed out that Pakistan’s wheat export market in Afghanistan has been replaced by Tajikistan’s produce. It sought federal government’s intervention to regain the market as Pakistan has huge quantity of surplus wheat and flour.

In its observation, the Punjab government had underlined four points, holding them responsible for Pakistan losing the export market in Afghanistan.

It said that due to non-availability of fortified wheat Afghanistan was tilting towards Tajikistan.



Secondly, a lobby is actively spreading propaganda against Pakistan’s wheat. It added that the all time high price of flour/wheat is one of the setbacks preventing Pakistan’s produce from actively competing with the region’s exports.

And finally, certain taxes on both sides of the border are partly responsible for Pakistan losing its competitive edge.

A senior officer in the Ministry of Commerce told The Express Tribune that all stakeholders discussed the four points raised by the Punjab government.

It was decided that a high level delegation be sent to Afghanistan to address the issue.

The delegation will take up the issue with the Afghan authorities, importers and other concerned stakeholders to address the misconception about the quality of Pakistan product.

However, it was admitted in the meeting that the high price of Pakistani wheat is a major factor behind the low demand.

Tajikistan is providing wheat at $200 per tonne as compared to $360 for Pakistan’s wheat.



They noted that a huge subsidy in line with the one given to sugar would be the solution to bring it at par with the regional market rate. However, the officer said that it is unlikely that any such subsidy would be given on flour export.

Published in The Express Tribune, December 30^th, 2015.

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