Pakistan: Wheat flour prices on the rise despite bumper crop

Contrary to the government’s claims about a declining trend in wheat flour prices, the commodity has seen a price hike and is not available at less than Rs150 per kilogram anywhere in the country.

However, the situation on the ground is completely opposite as the common man is facing enormous challenges in making ends meet due to the skyrocketing prices of essential commodities over the course of one year.

According to the experts, wheat consumption in the country has increased by around 7% during the ongoing year.

They are of the view that the wheat consumption in the country is likely to reach 30 million tonnes, which will force the government to import the essential commodity.

Federal Committee on Agriculture expects wheat production to be around 20.68 million tonnes during 2023.

According to a report by the Pakistan Bureau of Statistics (PBS), the country has imported wheat worth $1 billion during the first nine months of the fiscal year 2023, recording an increase of 25% from the same period in the previous fiscal year.

With the start of the Russia-Ukraine war in February 2022, the prices of various essential commodities soared on the international market. Both Russia and Ukraine are major exporters of wheat.

Pakistan’s increasing reliance on wheat imports is driven by a shortage of domestically produced wheat.

The increased expenditure on wheat imports has, however, placed a burden on the country’s already strained financial resources, where the country’s foreign exchange reserves are on a constant decline amid substantial growth in imports and declining exports.

The foreign exchange reserves held by the State Bank of Pakistan (SBP) fell $119 million to reach $4.19 billion on May 19.

Overall, the liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $9.73 billion. The net reserves held by banks amounted to $5.53 billion.

Tags: Pakistan, commodities, Production, wheat, wheat flour, consumption, exports, импорт, prices