Pakistan government changes flour export policy amid protests – International

Islamabad (Pakistan), July 15 (ANI): The Shehbaz Sharif-led Pakistan government on Friday revoked a March order banning the export of flour made from imported wheat, in view of the nationwide millers’ strike, Pakistani daily Dawn reported.

According to Dawn, the ban was introduced after farmers protested against wheat imports, despite the country’s good harvest.

Pakistan’s Commerce Ministry has issued two notifications withdrawing a March 29 order that allowed millers to export flour made from imported wheat. However, there was no data on the export of such flour on the Pakistan Bureau of Statistics (PBS) website. Export of wheat and its by-products made from locally produced wheat is already banned, Dawn reported.

The price of local wheat fell dramatically during the caretaker government’s term in office, mainly due to imports by the private sector, including millers producing wheat flour.

Of the 65 wheat importers, 17 are flour mills that also imported wheat. The government had earlier set up a committee to look into the matter, but it took two months to implement the ban on wheat imports, it was announced on Friday.

The Pakistan Flour Mills Association (PFMA) on Thursday went on strike to protest against the new withholding tax.

Flour traders and owners of atta chakkis (small mills) joined the protest, causing disruptions in flour supplies.

PFMA Chairman Asim Raza said the measure made flour mills the agents collecting the tax. He said the tax was likely to increase flour prices by 8 Pakistani rupees (PKR) per kg.

Raza said he would continue the strike until the demands were met and that the strike would negatively impact the supply chain.

“The tax scheme is unacceptable and impractical as flour traders refuse to hand over their consignments instead of sharing their tax details for collection of withholding tax,” he said.