AGP blows lid off Rs300bn wheat scandal

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malafide
ISLAMABAD
Auditor General of Pakistan (AGP) cites “malafide” intent, “completely unreliable” data, delayed federal-provincial actions and manipulation to benefit private sector at the cost of local farmers and the national treasury as reasons behind Rs300 billion 2023-24 wheat scam.
While the scandal had already attracted media and public attention, the AGP’s findings now provide official confirmation and new evidence including claims of “malafide” intent, fake data, and delayed government action. The report confirms that massive over-imports of wheat was done despite surplus stocks.
The AGP found that 3.59 million metric tonnes (MMT) of wheat were imported in 2023-24, far exceeding the approved quota of 2.40 MMT, even though Pakistan recorded its highest-ever local wheat production of 31.47 MMT and carried forward a stock balance of 4.64 MMT.
The report shows the justification for imports as “completely unreliable”, hinting at deliberate inflation of national demand estimates.
The audit observes: “The requirement was presented (seems malafide)”. Key data used to justify imports were riddled with inconsistencies, especially between opening and closing stocks over the years. The AGP noted discrepancies in wheat stock figures presented at official meetings, which were used to make major import decisions.
“Overstated” or “understated stock” figures led to poor decisions like excessive imports, or delays that created shortages. The report revealed that Punjab and Sindh — two major wheat producers — released drastically lower amounts of wheat to flour mills in mid-2023, creating a false sense of shortage that pushed wheat and flour prices up.
Punjab’s wheat release between June and October 2023 was just 5,657 tonnes, compared to over two million tonnes in the same period of 2022. A panic was created in the local market, causing an increase in flour prices. Perhaps the most damning revelation is the intentional delay in executing public sector wheat imports through the Trading Corporation of Pakistan (TCP).
Despite the ECC and federal cabinet approving one MMT of wheat import through TCP, the MNFS&R sat on the file for over a month, finally instructing TCP to withhold procurement altogether — after private imports had already flooded the market. It is apprehended that the ministries of MNFS&R and Commerce intentionally delayed the process to favour private importers, the AGP report states. — DNA