Summary Circular debt of wheat procurement reached Rs 120 billion, government unable to buy more wheat
LAHORE (Dunya News) – Circular debt of wheat procurement emerged as a new problem on Thursday as the federal government seemed unable to pay for the subsidy of wheat while it owes Punjab, Sindh and Agriculture Storage and Services Corporation limited (PASSCO) billions of rupees ,reported Dunya News.
After energy crises, circular debt of wheat procurement emerged as a hindrance for the people. There is a big question mark on whether or not the government will be able to buy new harvest. Farmers might face difficulties despite good harvest.
The sources from Ministry of Finance reported that the government owes Rs 70 billion to PASSCO, Rs 50 billion to Punjab with respect to subsidy on wheat. Sindh government also paid an interest of Rs 500 million to the banks regarding wheat subsidy.
Moreover, 3 million tons of wheat is present in the country excluding new harvest. The government has no clue what to do with the existing stock and where to manage finances to buy wheat.
