Pakistan increases regulatory duty on wheat imports

02/09/2016,

The Economic Coordination Committee (ECC) of the Government of Pakistan increased the regulatory duty on wheat imports from 40 percent to 60 percent. The duty was already increased in June last year from its previous level of 25 percent. Higher duties resulted in a sharp decline of wheat imports in 2015/16 marketing year (May/April), and they are expected to remain well-below average also in the current marketing year. The measure aims to discourage wheat imports and protect local farmers from low international prices. The Government supports the domestic wheat market also through the procurement programme (which for the 2016 crop was completed in June this year), through which it buys wheat from farmers at the support price and then releases to flour mills at a fixed price. This ensures a minimum return to farmers and supports wheat production. Export subsidies are also in place.

Country: Pakistan