Staff Report
ISLAMABAD: The government is allegedly hesitating to take criminal action against those responsible for the $1 billion wheat import scandal, as the caretaker federal cabinet may face investigation by NAB or FIA, it was learnt on Wednesday.
According to sources, the federal government led by Prime Minister Shehbaz Sharif is allegedly unwilling to take action against the caretaker premier Anwaarul Haq Kakar and his federal cabinet. However, members of the Shehbaz cabinet and bureaucracy have reportedly suggested to the Prime Minister to address the wheat import scandal in a more effective manner.
The sources also revealed that Pakistan Muslim League Nawaz (PML-N) supremo Nawaz Sharif wants to take strict action against all those responsible in the wheat import scandal. The final decision on whether to refer the matter to NAB or FIA regarding the $1 billion wheat import scandal report is expected within the next 24 hours, they added.
Reportedly, earlier on May 3, PM Sharif had formed a fact-finding committee to probe into irregularities in last year wheat import, despite a bumper crop, making it difficult for the Balochistan and Punjab governments to purchase the crop from farmers as they already have excessive stocks of the commodity.
Moreover, Federal Minister for National Food Security and Research Rana Tanveer has formed another inquiry committee to investigate irregularities and negligence committed in the import.
Reportedly, despite surplus domestic stocks, the import of more than 35,87,373 metric tons of wheat from September 2023 to March 2024 has allegedly caused loss of $1 billion of foreign exchange to the country. Similarly, the Ministry of National Food Security has allegedly facilitated the import of wheat in league with flour mafia and wheat importers and defrauded the country of more than one billion dollars of foreign exchange. Moreover, this import has inflicted a loss of above Rs 300 billion to the farmers and Rs 104 billion to the government exchequer, according to sources privy to the development.
According to sources, wheat stocks with PASSCO and provincial food departments were 43,65,220 metric tons on April 1, 2024 and there was no need for private import of wheat. They said as the private sector and flour millers imported wheat, PASSCO and provincial food departments could not sell their stocks of 43,65,220 metric ton and have incurred average incidental charges of Rs 950 per maund/40 kg, and total loss to government because of incidental amounted to Rs 104 billion which has allegedly indirectly gone to the pockets of flour millers, traders and bureaucracy. They said due to unnecessary and unwanted import, prices of wheat have crashed to Rs 2800-3000 per maund against government price of Rs 39,000/maund and the farmers will be forced to sell 50 percent i-e 16 million metric tons out of estimated 32 million metric tons of total produce as government is allegedly purchasing very little wheat. Thus, more than Rs 300 billion will allegedly be looted from the farmers and will go to the pockets of flour millers, import traders and bureaucracy, said sources.
The import was kept uncapped and ships continued to dock at Karachi even during the entire month of March, 2024 when wheat from Sindh province was coming to market, sources added.
It is also learnt from the sources that 71 cargos of wheat were imported from Russia, Ukraine, Bulgaria and private importers continued the import of wheat till March 31 instead of March 15. They said that over 3.5 million tons of wheat was imported under the pretext of importing one million tons of wheat. They said live insects were found during the inspection in 26 cargoes of wheat out of 71 cargoes of wheat imported from September 2023 to March 2024. Inspection of imported wheat was done by a subordinate department of the Ministry of National Food Security, said sources.
Sources also informed that the private sector was given an open exemption for the import of wheat instead of a fixed limit allegedly on the recommendation of the Ministry of Finance. They said that the Ministry of National Food Security had ignored the important suggestions of the Ministry of Commerce and Trading Corporation of Pakistan (TCP). Additional wheat was imported under the systematic plan, which caused billions of rupees loss to the country, said sources.
Khalid Mahmood Khokhar, President Pakistan Kissan Ittehad has requested the Prime Minister Shehbaz Sharif to conduct an inquiry into this mega scandal through a high-powered committee and those who made proposals and gave permission for import of wheat must be punished.
