ISLAMABAD: Pakistan said on Monday that it will import 300,000 metric tons of wheat from Russia on a government-to-government (G2G) basis. In addition, Pakistan approved a 63% increase in the fee paid to oil marketing companies (OMCs) for the selling of petroleum products.
The decisions were decided during a meeting of the Cabinet’s Economic Coordination Committee (ECC) headed over by Finance Minister Ishaq Dar.
In relation to wheat imports, the Ministry of Commerce published an overview of the G2G purchase of wheat from Russia. It claimed that between November 1 and January 15, 2023, Pakistan may acquire 300,000 tonnes of a specified milling wheat at a price of $372 per tonne from M/s Prodintorg, a Russian Federation state-owned corporation.
According to the Trading Corporation of Pakistan, the Russian wheat met the requirements of the Ministry of National Food Security and Research (TCP). Furthermore, it noted that M/s Prodintorg’s bank information had been reviewed, proving that as of October 31, 2022, it was not a sanctioned organization globally.
A 63 percent increase in profit for fuel sellers has been granted.
The TCP also claimed that the terms and conditions of the contract between the TCP and Prodintorg to supply wheat under G2G arrangements had been mutually agreed upon, and a memorandum of understanding (MoU) had been signed. The bid validity time, which had expired during the processing phase, had been extended to 1830 PST on November 1.
Because of international sanctions placed when Russia attacked Ukraine early last year, there has been much discussion about purchasing wheat, oil and gas products, and other commodities from Russia; however, the only issue that has been implemented is the import of wheat.
The ECC also permitted a 63 percent increase in OMC’s sale margins on petroleum products, from Rs3.68 per litre for gasoline and diesel to Rs6 per litre, subject to fiscal flexibility in POL prices.
Following an agreement with petroleum dealers for a 70% increase in margins to Rs7 per litre, the government team led by former Prime Minister Shahid Khaqan Abbasi committed to the increase in a meeting with OMCs on August 2.
On July 28, the ECC approved a 70% rise in the dealer commission on the sale of high-speed diesel (HSD) from Rs4.13 to Rs7 per liter. It also increased the dealer commission on gasoline sales by 43 percent, to Rs7 per litre from Rs4.90.
This was the country’s largest increase in margins approved all at once. The meeting was informed that, beginning in December 2021, or only seven months ago, dealers’ margins on HSD and fuel sales had climbed by more than 25%. The dealer commission on gasoline and HSD has grown by 79 percent and 112 percent, respectively, since December 2021.
