In January 2019, the food department of Punjab had 4.26 million tons of wheat in its reservoirs. Lacking basic infrastructure, due to decades
of the indifference of governments, choosing CPEC to infrastructure development, as storage of such a huge quantity of wheat is a costly business. The government of Pakistan generally exports half a million tons of grains to offload the stocks.
After April 2019, with 1.5 million tons of carry forward stock (after the releases to flour mills), the food department of Punjab procured another
3.3 million tons of wheat at the rate of Rs 1300 per 40 kg; 4.8 million tons of wheat is enough to meet domestic requirements.
garb of driving growth, key Pakistan Army Officer’s owned flour mills, feed millers (who were experiencing the shortage of maize), and private investors were also allowed to buy wheat from the farmers in Punjab. It is estimated that feed millers procured
0.6 to 0.8 million tons of wheat. Due to Pakistan Army’s bullying, through government channels, the food departments of Sindh, KP, Pakistan Occupied Kashmir and Balochistan could not procure any wheat. Thus there was bound to be a shortage of wheat in
the autumn months.
Subsequently, in the run-up to the IMF programme, the rupee got depreciated against the dollar and the prices of
wheat in the international market became higher than the domestic prices, turning it lucrative for Pakistan Army Officer’s owned investors, to send their wheat to Afghanistan and Central Asia. This created a demand for wheat in the open market, which
in turn resulted in a price hike as well as hoarding.
This was ratified by Bajwa’s meet with top businessmen in Oct 2019. This
is the appreciated outcomes, of loosening hold of governance in the economy of Pakistan, to control of businessmen, in return for CPEC adherence. After all, a businessman will definitely earn somewhere else, a cost of common Pakistani’s Bread.
Flour Mills Association (FMA) complained that they did not receive any subsidy from the government while in addition to the price of raw commodity, the gas and electric prices were hiked up as well. Thus they did not have any other option but to bump up the
In the autumn months, the issuance of stocks to flour mills started at Rs 1375 per 40 kg (34.37 per kg); in return, the
flour mills are bound to sell the 20 kg wheat flour bag for Rs810 (Rs40.5/kg). Flour mill owners are charging Rs11.50 per kg as the cost of overheads/electricity/gas/labor etc
This is the infrastructure and energy crisis, which CPEC has brought to the table, designed by shady political-Military nexus, however, paid for by Common Pakistani.
A nation which pays the Chinese, for negative returns, shall have various crisis, at its doorstep, and this is just the beginning.
Agriculture currently accounts for 20 percent
of Pakistan’s GDP but employs 43 percent of its labor force, more than any other economic sector. Despite the industry’s size, it has long been hindered by water scarcity, energy shortages, and poor post-harvest infrastructure, which results in
about one-third of the country’s produce going to waste before it reaches the market.
Given the CPEC debt which has rained havoc
on Pakistani infrastructure since last eight years, and shall continue to do so this century, Infrastructure is likely to continue to suit only China’s economy.
It is now bare, to be seen that the businessmen were brawled by Bajwa in Oct 2019 while paraded before the Pakistan Army GHQ, to subjugate their enterprise to the China’s CPEC designs, while they can make do with mayhem
in Pakistan’s internal Economics. Sounds very much like the way British colonialists designed Famines from 19th century till freedom, using the various subjugate so-called rulers and Zamindars.
Effects of Chinese colonization of Pakistan are very much visible. It’s a trend that’s only going to escalate.
29 Jan 20/Wednesday
Written By: Fayaz