Pakistan Lifts Flour Export Ban Amid Flour Millers' Strike
The Pakistani government has revoked a ban on flour exports made from imported wheat. This decision comes amid a nationwide strike by flour millers protesting against the new withholding tax, which they argue would increase flour prices and disrupt the supply chain.
- Country:
- Pakistan
In a significant policy shift, Pakistan's government led by Shehbaz Sharif has revoked its March order banning the export of flour made from imported wheat. The decision arrives amidst a nationwide strike by flour millers, according to a report by Pakistan-based daily, Dawn.
The Ministry of Commerce issued notifications withdrawing the March 29 order that permitted the export of flour from imported wheat. However, the Pakistan Bureau of Statistics (PBS) website shows no data regarding such exports. The export of wheat and its byproducts from locally produced wheat remains banned, as per the Dawn report. The local wheat price has sharply declined during the caretaker government's tenure, largely due to increased imports by the private sector.
Out of 65 wheat importers, 17 were flour mills. The government had earlier formed a committee to investigate the impact of wheat imports but took two months to impose an import ban, which was officially communicated on Friday. In reaction, the All-Pakistan Flour Mills Association (PFMA) went on strike on Thursday to protest against a new withholding tax.
Flour dealers and owners of atta chakkis (small wheat grinding units) joined the protest, disrupting the flour supply chain. PFMA Chairperson Asim Raza warned that the new tax measure would make flour mills withholding agents for tax collection and would increase flour prices by PKR 8 per kg.
Raza promised to continue the strike until their demands are met, warning of further disruptions in the supply chain. "The tax measure is unacceptable and impracticable," he stated, adding that flour dealers are refusing to lift their consignments to avoid sharing their tax details for withholding purposes.
(With inputs from agencies.)
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