ISLAMABAD, 26 April 2008 — Finance Minister Ishaq Dar yesterday said that the wrong agricultural policy of the previous government cost Pakistan over 48 billion rupees.
Dar told the National Assembly (Parliament) that the government of former Premier Shaukat Aziz allowed export of half a million metric tons of wheat at the rate of $200 per ton, estimating a surplus wheat crop. When the calculations turned out wrong and the country faced a shortage of wheat and flour, the government ordered the import of 1.7 million metric tons at the rate of $500 per ton, resulting in a net loss of $750 million (48.52 billion rupees) to the exchequer, he added.
Dar said that according to preliminary estimates, Pakistan would produce 21.8 million tons of wheat this year. However, the government would decide whether to import or export wheat only after a second estimation, which is expected by the end of this month.
Going by the preliminary estimates, there will be a shortage of 920,000 tons of wheat this year.
Replying to a question, he said the house committee on finance should investigate the mismanagement in export and import of wheat and identify the people who benefited from this. Dar also said the Finance Ministry was trying to undo the damage done by the previous government to the country’s financial system. “Only 10 weeks of the current financial year are left for us to set things right and we’ll do our best,” he said.
Meanwhile, the government has set up a national task force to curb hoarding of food items, particularly wheat, and prevent their smuggling to neighboring countries.
Addressing a news conference here on Thursday after a meeting of the Federal Committee on Agriculture (FCA), Minister for Food, Agriculture and Livestock Nisar Ali Khan said the task force, to be headed by the food and agriculture secretary, would monitor day-to-day procurement and availability of wheat in the country.
The FCA would, after two weeks, brief the top leadership of the Pakistan People’s Party (PPP) and Pakistan Muslim League-Nawaz (PML-N) on the food situation in the country, he added. The task force comprises chief secretaries of all the provinces, additional secretary interior and an official of the Federally Administered Tribal Areas’ secretariat.
According to Khan, food prices were going up globally, but the situation in Pakistan had deteriorated owing to failure of the previous government to announce the wheat support price on time and bring down rising prices of various inputs, including fertilizers.
Khan ruled out any further increase in the wheat procurement price that has already been raised to 625 rupees per 40 kg from 510 rupees.
The minister said the government did not intend to ban the export of rice since it was a major foreign exchange earner, besides which the country had a surplus of 2.3 million tons.
In a separate development, an aide to former Pakistani premier Nawaz Sharif has warned that ministers from his party will quit the Cabinet if the new coalition government does not restore judges fired by President Pervez Musharraf.
Sharif’s party is the second largest in the new government, which is led by the party of assassinated former Prime Minister Benazir Bhutto. Sharif’s party has demanded the restoration of judges Musharraf sacked last year after declaring a state of emergency.
— With input from agencies
