STAFF REPORT IBD: Pakistans efforts to export wheat to Iran, aimed at paying outstanding bills for electricity import, have been frustrated as state-owned Trading Company of Iran has cancelled an export contract under a barter trade agreement.

According to sources, the issue came up for discussion at a recently held meeting of the ECC in which the body was told that Iran had scrapped the contract for export of 30,000 tons of wheat.

According to officials, Pakistan had agreed to sell wheat to Iran at $300 per ton to cover the cost of electricity being supplied to the NTDC by Irans Tavanir. The government was to bear the price differential on account of transport charges and current international prices of wheat, estimated at around $70 per ton, in light of the ECC decision in 2012.

The officials said the NTDC had already paid the rupee equivalent of $9 million to Passco as the cost of 30,000 tons of wheat, out of $53.21 million owed to Tavanir.

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