Western sanctions do not target food shipments, but financial measures have frozen Iranian companies out of much of the global banking system, hindering payments for food imports. PHOTO: FILE
ISLAMABAD: Pakistan has authorised the export of 100,000 tons of wheat to Iran in trade not jeopardised by Western sanctions, to settle dues for electricity supplied to Pakistan’s energy-starved border areas, the commerce ministry said on Friday.
The shipment of 100,000 tons was to have been delivered to Iran in mid-February, but was delayed by preparations for May 11 elections.
“The wheat is being given to Iran against the outstanding payment of $53 million for electricity supplied to Pakistani border areas from the Iranian grid,” ministry spokesperson Mohammad Ashraf said.
“The interim Cabinet has approved the decision and exports will be initiated as early as possible.”
The European Union and the United States have imposed toughened sanctions meant to discourage Tehran’s nuclear programme, which they say has a military purpose. Iran rejects that claim, saying its programme aims at the peaceful production of electricity.
Western sanctions do not target food shipments, but financial measures have frozen Iranian companies out of much of the global banking system, hindering payments for imports, on which Iran relies for much of its food.
Pakistan is battling a chronic energy shortage, which is inflaming public anger and stifling industry. Power outages can last eight to 10 hours a day in cities, with much more frequent cuts in rural areas.
“Pakistan is an energy-starved country facing severe power cuts that are badly hampering industrial output,” Ashraf said. “Connecting far-flung areas to Pakistan’s grid is a costly affair.”
Electricity from Iran costs Pakistan around $3 million a month and is supplied to towns near the Iranian border, including the port city of Gwadar. Pakistan also says it is building a $7-billion gas pipeline with Iran, despite US pressure on Islamabad to back out of the project.
Published in The Express Tribune, May 18th, 2013.
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Did Iran pay enough for the centrifuges we sent to it and then she told on us?
What about the wagon after wagon of wheat that we sent to Iran during the 1980-1988 Iran-Iraq war?
@Antebellum:
Moreover, 90% of that electricity is being provided without billing I guess!
So basically while Balochistan is not willing to give Punjab gas, but the Punjabi farmer have to somehow pay for the electricity consumption of Balochistan?
Exchange of Gold against dust! A moderate sized family consumes approximately 500 kg of wheat per annum. This quantity can fulfill the requirements of two hundred thousand (200,000) families for more the one year. Highly unfortunate exchange!