Punjab plans to pull out of wheat market, cut subsidy.

Byline: Nasir Jamal

LAHORE -- The Punjab government has prepared a strategic framework to gradually reduce its interventions in the wheat market to cut the massive subsidy it pays on the procurement, transportation and storage of the cereal.

Punjab finance minister Hashim Jawan Bakht told a post budget press conference on Tuesday that the food department was likely to present the framework to the cabinet shortly.

'As we get out of the wheat market, we will ensure that the burden is not passed on to the consumers,' he said.

The government has procured 4.5 million tonne wheat this year and allocated Rs331 billion for its procurement operations for the next harvest.

Bakht pledges burden won't be passed onto people

Speaking about the Lahore Orange Line Metro Train (OLMT) project, he questioned the wisdom behind borrowing money for implementing a Rs300bn public transport project when the province did not have enough health facilities for its population.

He said the people of Punjab would be paying Rs9bn in subsidy and loan repayments every year to operate this train on a 27km-long track. 'It [OLMT] is a white elephant, a big burden on the people,' he added.

The PTI government has halted work on the project since it came into power. However, it has allocated Rs40bn next fiscal year to complete the project, probably under pressure from China.

Speaking about the budget, he said the country was passing through a critical period following the coronavirus pandemic and the provincial government had given the best budget in the current scenario by focusing on areas hit by the virus to...