Key Points
- 500,000 metric tons of wheat approved for sale at revised reserve prices
- Decision aimed at reducing storage costs and easing fiscal burden
- Rs 536 million allocated for development projects in two provinces
- Petroleum levy settlement case involving a major refinery sent back for review
ISLAMABAD: Pakistan’s top economic decision-making body on Tuesday approved the sale of 500,000 metric tons of state-held wheat at revised reserve prices, as the government seeks to manage surplus stocks and contain mounting storage costs.
The decision was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Senator Muhammad Aurangzeb.
The ECC functions as Pakistan’s apex economic forum for reviewing urgent economic, fiscal and commodity-related matters before formal cabinet approval.
The committee considered a proposal from the Ministry of National Food Security and Research to dispose of wheat stocks held by the Pakistan Agricultural Storage and Services Corporation (PASSCO), a state-owned entity responsible for strategic grain reserves.
Officials informed the meeting that an earlier attempt to sell the wheat at previously approved reserve prices failed after bids came in below expectations.
Given the high carrying costs associated with prolonged storage, the ECC approved the fresh sale effort through competitive bidding on a First-In-First-Out basis.
Under the revised framework, the reserve price has been set at Rs 4,150 per 40 kilograms for locally procured wheat and Rs 3,800 per 40 kilograms for imported wheat.
The move is intended to reduce fiscal strain, improve market liquidity and prevent further accumulation of ageing stock.
In a separate decision, the ECC approved a technical supplementary grant of Rs 536 million under the Public Sector Development Programme, Pakistan’s federal infrastructure and development funding framework.
The allocation is linked to projects originally undertaken by the now-defunct Pakistan Public Works Department, a federal construction agency, which was dissolved as part of administrative reforms.
ALSO READ: Pakistan Weighs Export Push as Potato Glut Pressures Farm Prices
The approved funds will be transferred to the provincial governments of Punjab and Khyber Pakhtunkhwa to ensure continuity of specific ongoing projects, in line with Pakistan’s constitutional division of powers between the federal and provincial governments.
The committee also reviewed a summary from the Petroleum Division regarding a fact-finding report on a Deed of Settlement with Cnergyico PK Limited, Pakistan’s largest oil refinery.
The report addressed delayed payments of the Petroleum Levy, a federal tax imposed on petroleum products and a significant source of government revenue.
After the discussion, the ECC returned the summary with instructions for a more detailed presentation at a future meeting before taking a final decision.
The session was attended by the ministers for petroleum, national food security and investment, as well as senior officials from relevant ministries.
