Pakistan government reverses flour export policy amid protests

Islamabad [Pakistan], July 15 (ANI): Pakistan’s government, led by Shehbaz Sharif, revoked its March order on Friday, banning the export of flour made from imported wheat amid a nationwide strike by millers, Pakistan-based daily, Dawn reported.

The ban came after the farmers protested against wheat imports despite the high crop produce in the country, Dawn reported.

The Pakistan Ministry of Commerce issued two notifications that withdrew the March 29 order that allowed millers to export flour made from imported wheat. However, no data on the export of such flour was available on the Pakistan Bureau of Statistics (PBS) website. Export of wheat and its byproducts from locally produced wheat is already banned, Dawn reported.

The local wheat price saw a dramatic decline during the caretaker government’s tenure, primarily due to imports by the private sector, including wheat flour millers.

Out of 65 total wheat importers, 17 were flour mills that also imported wheat. The government had previously formed a committee to investigate the issue, but it took two months to impose a ban on wheat imports, which was officially notified on Friday.

On Thursday, the All-Pakistan Flour Mills Association (PFMA) went on strike as a mark of protest on Thursday against the new withholding tax.

Flour dealers and owners of atta chakkis (small wheat grinding units joined the protest, causing disturbances in the supply flow of flour.

Chairperson of PFMA, Asim Raza said that the measure has made flour mills withholding agents for tax collection. He said the tax is expected to increase flour prices by Pakistani Rupees (PKR) 8 per kg.

Raza said that he would continue the strike until the demands are met and the strike would adversely affect the supply chain.

“The tax measure is unacceptable and impracticable as flour dealers are refusing to lift their consignments instead of sharing their tax details for withholding tax purposes,” he said.