Govt might withdraw wheat subsidy for G-B

GILGIT: Federal government is considering withdrawing subsidy on wheat being provided to Gilgit-Baltistan, sources told The Express Tribune on Saturday.

“The decision is under consideration at the federal level as withdrawal of wheat on subsidised rates to the people in the country is one of the conditions the IMF has imposed,” sources privy to food department officials said.

The population of G-B which is over 1.3 million depends on other provinces for wheat and other food items and the withdrawal of subsidy will hurt them.

At present a 40-kilogramme (kg) bag of flour cost Rs530 in Gilgit-Baltistan and the withdrawal of subsidy will mean upsurge of rates by more than 100 percent. “If the subsidy is withdrawn, the cost of one 40- kg bag will be over Rs1,000,” sources said, adding that the condition of withdrawal of subsidy had been put forth by the IMF during the recent meeting with Pakistani officials therefore the government had no option but to accept it.

“After petroleum products and electricity, the increased prices will hit the common people hard,” they said.

Sources said that in the wake of floods across the country, Pakistan has lost tons of the standing crops and continuation of the facility wasn’t possible for the government.

Last year, the government had brought the same matter under consideration but refrained from implementing it for various reasons.

Published in The Express Tribune, October 3^rd, 2010.