The federal government on Wednesday gave the nod to Chief Minister Maryam Nawaz-led Punjab government for the purchase of a staggering 2 million tons of wheat.
This decision comes as a relief for the Punjab government, which has been grappling with logistical challenges in securing the much-needed grain amidst mounting pressure from various farmers' associations.
The Ministry of Finance acted upon the pressing matter by approving a monumental loan of Rs552 billion to facilitate Punjab's wheat procurement process.
In a formal communication to the State Bank, the Ministry of Finance has underscored the urgency of expediting the issuance of the wheat loan.
Sources within the Ministry of Finance have revealed that out of the sanctioned amount, a substantial sum of 196 billion rupees has been earmarked explicitly for the purchase of 2 million tons of wheat.
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Additionally, Rs356 billion rupees have been allocated for the rollover of existing wheat loans, further streamlining the financial mechanisms vital for sustaining Punjab's agricultural backbone.
Sources also added that the loan approval dossier had been forwarded to the federal authorities over a month and a half ago, underscoring the collaborative efforts to navigate the intricate web of bureaucratic procedures.
Furthermore, details emerging from the Ministry of Finance shed light on the terms of the new wheat loan, indicating a 22 percent rate markup—a measure aimed at striking a balance between financial sustainability and operational efficacy.
The competitive bidding process witnessed the active participation of various banking institutions, including Punjab Bank, underscoring the collective commitment towards fortifying Punjab's agricultural resilience.
Kissan Ittehad announces nationwide protests
It is pertinent to mention that Kissan Ittehad declared nationwide protests from May 10 in response to the government's failure to purchase wheat from farmers.
Speaking at a press conference in Multan, Pakistan Kissan Ittehad Chairman Khalid Mahmood Khokhar lamented the dire situation faced by farmers, stressing that the absence of government procurement has left them with no choice but to take to the streets.
Khokhar outlined the protest plan, stating that it would kick off with symbolic funeral prayers for agriculture, followed by a march to Lahore, gathering farmers from across the country. Tractors and livestock will accompany the protesting farmers, underscoring the widespread impact of the crisis.
Highlighting the financial losses incurred by farmers, Khokhar revealed that the community has suffered a staggering Rs. 400 billion hit due to low wheat prices.
He bashed the government's decision to prioritise wheat importers over local farmers, accusing them of sacrificing the interests of the agricultural sector.
Expressing concern over the outflow of foreign exchange, Khokhar pointed out that the country lost $1 billion due to the government's inaction on wheat procurement.
Moreover, he criticized the exorbitant prices of urea fertilizer, stressing that farmers are forced to pay inflated rates or resort to the black market for essential agricultural inputs.
Khokhar vehemently condemned the neglect faced by farmers, asserting that those responsible for their financial distress should be held accountable.
