Punjab food department owes SBP Rs174b

Punjab govt has been paying daily interest of Rs70 million on this loan.

MULTAN: The Punjab food department owes the State Bank of Pakistan (SBP) Rs174 billion despite producing 82 per cent of the country’s total agricultural output.

The Punjab government has been paying daily interest of Rs70 million on this loan but has not taken any steps to repay the principal amount.

Annual consumption of wheat in the country is 21 million tons and current stocks stand at eight million tons. Agricultural experts have estimated that the demand for wheat will be 2.1 million tons over the next three months, which would allow the food departments to sell around six million tons in domestic and foreign markets. Punjab is expected to export one to three million tons of wheat.

The export of surplus wheat will generate an estimated profit of Rs23 billion, according to Punjab Kisan Board President Fayyazul Hassan. The current wheat crisis in Australia and European countries could mean higher export revenues for the Punjab government.

However, the government needs to make sure the exports do not result in a local shortage, which would add to the burden on the common man in the form of higher prices, Hassan said.

Published in The Express Tribune, January 23^rd,  2011.