Special audit ordered on wheat procurement scandal causing Rs300bn loss

The Auditor General of Pakistan has initiated a special audit into the wheat procurement scandal for 2023-24, which is reported to have resulted in a financial loss exceeding Rs300 billion. 

According to a news report, the audit termed a “special study,” aims to investigate the mismanagement and import of excess wheat that significantly impacted both growers and government finances.

The directive for the audit was issued on September 3, with federal and provincial food authorities, as well as Pakistan Customs, being asked to provide relevant data. 

All provincial and regional audit heads, including those in Azad Kashmir and Gilgit-Baltistan, have been instructed to gather details from their respective food departments on wheat procurement policies, shortages, production targets, and subsidies from the past three years.

The audit will also probe the discrepancy between the wheat produced—28.18 million tons last year—and the additional import of 2.45 million tons, which took place during the caretaker government’s tenure. 

This unnecessary import caused provincial governments, especially in Punjab, to reduce wheat purchases from local farmers, leading growers to sell at prices below the official rate, resulting in significant losses.

At the federal level, Pakistan Agriculture Storage & Services Corporation Ltd (PASSCO), flour mills, and the Trading Corporation of Pakistan (TCP) will be required to provide relevant documentation. 

Customs authorities in Lahore and Karachi will also contribute to the investigation by offering details on wheat imports.

The audit aims to uncover why excessive imports were made despite sufficient local production, and how it affected the agricultural sector, particularly farmers who were forced to sell at lower prices.