Food supply at risk as banks in Pak. reluctant to open letters of credit

Amid the shortage of wheat, the banks in Pakistan remain hesitant in opening letters of credit (LCs) for the import of necessities, posing threat to the food supply, reported The News International.

The inability of banks to open LCs despite the State Bank of Pakistan’s (SBP) directives about import facilitation, poses a threat to the supply of food, as well as, could escalate price pressures and create a shortage of medications. Thousands of shipping containers are stuck at the Karachi Port after offloading due to the banks’ reluctance to guarantee foreign exchange payments. Perishable and non-perishable foodstuffs and medical supplies are among the cargoes, reported The News International.

Pakistan is facing its worst-ever flour crisis with parts of the country reporting a shortage of wheat and stampedes reported from several areas in Khyber Pakhtunkhwa, Sindh, and Balochistan provinces.

Prices of wheat and flour have skyrocketed amid the ongoing crisis in Pakistan, The Express Tribune reported. Flour in Karachi is being sold from Rs 140 per kilogram to Rs 160 per kilogram.

In Islamabad and Peshawar, a 10 kg bag of flour is being sold at Rs 1,500 per kilogram while a 20-kilogram bag of flour is being sold at Rs 2,800. Mill owners in Punjab province have increased the price of flour to Rs 160 per kilogram.

Similarly, Khyber Pakhtunkhwa has been facing the worst-ever flour crisis as a bag of 20-kilogram flour is being sold for Rs 3100 after the government failed to control the price of the stable, The News International reported. (www.business-standard.com)