ISLAMABAD: A renowned economic watchdog has criticised the government for producing the costliest wheat in the world.
Pakistan Economy Watch (PEW) has asked the government to tackle distortions in the wheat market, as forty percent population is living below the poverty line but is forced to consume the costliest wheat flour in the world. Revisiting support price can improve the situation as annually surplus wheat worth billions of rupees is wasted due to improper storage facilities, said PEW President Dr Murtaza Mughal.
In a statement, he said that a former prime minister doubled the wheat support price due to sliding popularity of his party, which boosted the production beyond control. The bid to win elections failed and country lost competitive edge in the international market, running out of all options but to export a little quantity and start donating the commodity.
Dr Mughal said the government has around six million tonnes of wheat in storage while the next crop is expected to touch 25 million tonnes mark due to good weather, which will worsen the situation and may result in a loss of Rs 20 billion. He said the government has allowed $45 to $55 subsidy on export of wheat, which proved futile as target of 1.2 million tonnes of export failed with a wide margin.
