Circular debt in food sector hits Rs 120 billion


Circular debt in food sector has hit Rs 120 billion and the government does not have enough resources to purchase reaped wheat.

While the country is struggling with debts in energy sector, food sector is heading downhill.

Farmers are vulnerable to a huge blow despite good wheat yields. According to sources privy to the finance ministry, the federation owes Rs 70 billion to Pasco and Rs 50 billion to Punjab government as subsidy for wheat purchase. On the other hand, the Sindh government is paying Rs 500 million every month to banks as interest after purchasing wheat yields. It should be noted here that the country had around 3 million tonne indigenous wheat while fresh yields are also ready for harvesting. Excess wheat can also not be exported due to lessened prices in international market. The issue has stumped authorities concerned as they do not know how to utilise excess wheat and buy fresh yields.