The Government of Pakistan has allowed the export of 100,000 metric tons of subsidized wheat flour. The exports will be eligible for the same subsidies that were recently announced for wheat exports. The announcement is not expected to result in a significant increase in flour exports.

General Information:

The Government of Pakistan has enlarged the scope of its subsidized wheat export program by allowing the export of 100,000 metric tons of wheat flour at the same subsidy level that was previously approved for wheat exports. Exporters who ship at least a metric ton of wheat flour can claim a subsidy for an equivalent quantity of wheat procured from the Provincial Food Departments of Punjab or Sindh.

The decision appears to be aimed principally at the Afghan market. Pakistan is a regular supplier of wheat flour to Afghanistan but trade sources believe that the decision will not have significant impact on the pace of wheat exports to Afghanistan. Pakistan's wheat flour exports (expressed in wheat equivalent) during the current marketing year are estimated at 600,000 tons. The trade mostly operates through informal channels.

The Government of Pakistan recently approved the export of 1.2 million metric tons of wheat from government stocks and approved an export subsidy of Rs. 6 billion ($60 million) to lower the price of wheat destined for export