Flour export ban | The Express Tribune

In another reactive measure, the government has banned the export of flour made from imported wheat in the wake of the Pakistan Flour Mills Association (PFMA) strike. More than 1,800 flour mills across the country have shut down to protest the tax measures, which they say will increase their burden as they will have to work as FBR tax agents and collect advance tax from retailers who do not file tax returns. Additional taxes have also been imposed on the flour mills, leading to a rise in prices. At a time of economic uncertainty, the government’s new measures have raised questions about food security as the shortage of flour supply could have far-reaching repercussions on the general public, who are already frustrated and burdened with taxes.

At the same time, the government also banned the import of wheat. In a free market economy, supply and demand forces must determine the price of the commodity in the local market. For decades, the policy of guaranteed minimum prices for wheat ensured that only mill owners, middlemen and large bureaucracies associated with agriculture benefited from it, not the general public. This policy also led to a lack of innovation in the agri-industry, as farmers and landowners did not invest in new technology or better seeds because their income was guaranteed. Such policies should be abolished to ensure competition in the sector and to benefit consumers, as higher supply would lead to lower prices in the local market.

The government must simultaneously improve reporting mechanisms in provincial agriculture departments and the federal food ministry to ensure food security at all times. Better policymaking is the need of the hour as knee-jerk reactions will not benefit the common man or the country in the long run.