TCP to be persuaded to import wheat via Gwadar

[LRE]

TCP to be persuaded to import wheat via Gwadar


MUSHTAQ GHUMMAN
ISLAMABAD (September 08 2008): The government has constituted a three-member committee to convince the Trading Corporation of Pakistan (TCP) to import wheat through Gwadar Port, which is said to be uneconomical, official sources told Business Recorder.

The TCP had been directed by the Economic Co-ordination Committee (ECC) to import wheat through Gwadar Port at the request of Balochistan government, but the Corporation did not implement the decision.

"The TCP is in not importing wheat through Gwadar Port although ECC had decided that some wheat should be imported through Gwadar," the sources added. Responding to the accusations, the TCP chairman said that it was not feasible to import wheat through Gwadar as it would raise costs. There is a wide disparity between Gwadar and other ports, Port Qasim or Karachi Port, with respect to handling and transportation charges, the sources continued.

Sources said some of the ECC members at a recent meeting of the ECC took exception to the attitude of the TCP and insisted that Gwadar be made fully functional regardless of its higher handling and transportation charges.

In order to settle this issue, the ECC approved constitution of a committee under the chairmanship of the Ports and Shipping minister, Commerce secretary, and TCP chairman, which would deliberate on the matter and place their recommendations before the Daily Economic Monitoring Committee (Demc). When contacted an official of the commerce ministry stated that the ministry has finalised recommendations to submit to the committee.

According to sources, the ECC was also informed of the import profile of wheat and it was stated that out of 2.5 million tonnes, the Corporation had, as of August 18, purchased 1.53 million tonnes.

Sources said that the Cabinet, in its meeting in Karachi in July, had considered a proposal of the Ports and Shipping Ministry to shift 20 percent workload of Port Qasim and Karachi Port to Gwadar Port. Despite its outsourcing to Port of Singapore Authority, the element of inertia is evident, which requires similar government support as was earlier extended to the Port Qasim at its initial stages through allocation of assured cargo.

According to sources, the Ports and Shipping Ministry secretary had expressed the view that Gwadar Port has already handled a wheat-carrying ship in March 2008, and the port operator has adequate arrangements for handling any fresh consignments. Balochistan government has also proposed that 2.5 million tonnes of wheat, being imported by the federal government, should be handled at the Gwadar Port to strengthen operational activity.

Besides, the Balochistan governor had recommended that 20 percent of the workload of other ports should be shifted to Gwadar. Sources said that the secretaries committee, headed by the finance minister, in its meeting on June 18, had recommended that the federal government should at least allow import of wheat destined for Balochistan through Gwadar Port.

Copyright Business Recorder, 2008

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