ISLAMABAD: As thousands of people have staged protests and shutter down strikes in Gilgit Baltistan against wheat shortages, electricity load shedding and absence of land reform, the regional government has decided to purchase 13000 metric ton wheat at market price and out of the existing subsidy program.
As per documents available with this scribe, the Ministry of Food Security and Research has informed PASSCO that GB government has intended to purchase 13000 MT of local wheat from its allocated quantity of 160000 MT on full cost (Rs 55000/PM) and incidental (Rs 6822.73/MT). The Ministry has approved the deal considering the weather sensitivity of GB.
This is the second time the regional government has decided to use its regular budget for purchase of wheat to meet shortages as it had purchased around 15000 MT wheat from the Punjab government last year. Since the existing subsidy of Rs 8 billion is not sufficient to purchase the required wheat quota from the center, the GB government has been left with no option but to use a regular budget to meet the deficit.
By purchasing 13000 MT wheat the GB government would be paying Rs 803.69 million to PASSCO in addition to the already allocated subsidy to the area.
Earlier during a recent meeting with Finance Minister of GB Javed Manwa and others, the Federal Finance Minister Senator Ishaq Dar had assured that the short supply of wheat owing to a jump in prices of the commodity in the center would be addressed on priority basis.
According to insiders, the Dar was informed that the GB is not being given wheat as per the required quota of 160,000 MT per annum for the shortage of subsidized amount as the existing allocated subsidy of Rs 8 billion is not catering the required quantum of the commodity. The supply of imported wheat, cost of which is high as compared to the local wheat, has caused further reduction in releases to GB in terms of quantity.
Earlier the GB government had also requested the center to supply domestic wheat to the region instead of imported commodities.
After detailed discussion on the issue, Javed Manwa informed this scribe that the Federal Minister of Finance has given instructions to concerned stakeholders including PASSCO, Ministry of Food Security and Research to ensure delivery of the required quantity of wheat as soon as possible in the light of the recommendations of ECC.
Meanwhile, in a statement issued here on Friday, Chief Minister of Gilgit-Baltistan Khalid Khurshid said that the imported government in the center, by cutting the wheat quota of the GB, has taken away bread from the people of Gilgit-Baltistan and food security in the province.
Keeping the crisis in view the provincial government decided to purchase 13000 metric tons of wheat from its limited financial resources to ensure the supply of wheat and flour to its people and to deal with any food security situation.
“This behavior of the imported federal government towards Gilgit-Baltistan is very sad and condemnable,” he said, adding that purchase of additional wheat by the provincial government will help in dealing with the wheat crisis in the province.
