Exclusive: Inside Pakistan’s Rs450 billion wheat import scam

WEB DESK: Wrong policies and conflicts of interest surrounding wheat import and the maintenance of carryover stocks resulted in approximately Rs450 billion in losses for both Pakistan’s farmers and the government, the Hum Investigation Team (HIT) has learnt.

According to evidence available with the HIT, the country’s farmers incurred losses amounting to approximately Rs345 billion. It is attributed to depressed wheat prices in the open market and the government’s failure to procure wheat directly from farmers.

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The federal and provincial governments also collectively suffered losses totaling Rs104 billion, primarily due to the faulty policies implemented by the caretaker government and civil bureaucracy. These missteps included misrepresenting the actual status of wheat stocks and authorising unrestricted wheat imports by private entities.

The investigation further revealed that certain private investors and businessmen, reportedly in collusion with caretaker officials and select civil servants, capitalised on the situation by obtaining import permissions.

They imported over 3.5 million metric tonnes of wheat from six different countries between September 2023 and March 2024. The aftermath of this scheme saw flour mill owners, businessmen, middlemen, and allegedly some politicians amassing substantial profits at the expense of ordinary citizens, selling wheat and flour at inflated prices.

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Despite possessing ample wheat stocks between December 2023 and February 2024, the government refrained from releasing its reserves, allowing the private sector to exploit the situation further. As a result, the already burdened populace bore the brunt of inflated prices for essential food commodity.

With the information coming to light, Prime Minister Shehbaz Sharif ordered an inquiry into the “wheat import scam”.