The International Monetary Fund (IMF) has permitted Pakistan to purchase 6.2 million tonnes of wheat this year to rebuild its national reserves, with the government setting its own strategic stock targets under the newly approved Wheat Policy 2025–26. The procurement, costing approximately Rs542 billion, will be carried out jointly by the federal and provincial governments.
Indicative Wheat Price Set at Rs3,500 per 40kg
According to Ahmed Umair, the Prime Minister’s Coordinator on Agriculture, the officially announced price of Rs3,500 per 40 kilograms is not a fixed support rate but an indicative price based on global market trends and transportation costs. The IMF has reportedly endorsed this pricing methodology, allowing the government to align domestic procurement prices with international benchmarks.
IMF Relaxes Earlier Restrictions on Wheat Purchases
Previously, the IMF had barred Pakistan’s federal and provincial governments from intervening in commodity markets to minimize distortions, a move that had led to a sharp decline in wheat prices. The lender’s latest decision to permit limited procurement reflects its confidence in Pakistan’s reformed policy framework, which now balances food security needs with fiscal responsibility.
Provincial Procurement Targets Finalized
Under the new wheat policy, Punjab will procure 2.5 million tonnes, Sindh 1 million tonnes, Khyber Pakhtunkhwa 750,000 tonnes, and Balochistan 500,000 tonnes. The federal government will acquire 1.5 million tonnes through private-sector partnerships. With the Pakistan Agricultural Storage and Services Corporation (PASSCO) now dissolved, licensed private operators will handle procurement, storage, and financing on behalf of the government.
Sindh Seeks Higher Support Price
Disagreements surfaced during the policy meeting when Sindh proposed setting the wheat price at Rs4,000–4,200 per 40kg, a demand supported by the PPP Central Executive Committee. The federal government, however, insisted that the rate must remain aligned with global prices to avoid market distortion. The matter has been referred to Deputy Prime Minister Ishaq Dar for final resolution between the federal and Sindh governments.
Storage and Procurement Through Private Sector
The government estimates that storing 6.2 million tonnes of wheat for one year will cost around Rs125 billion. Under the new policy, the private sector will be compensated for providing procurement and storage services as well as for financing costs. Only licensed operators will be authorized to participate in the process, ensuring transparency and accountability.
IMF Review Looms as Policy Gains Approval
The IMF’s approval of the procurement plan comes just weeks before its board meeting to finalize the second review of Pakistan’s $7 billion bailout and the first review of the $1.4 billion climate facility. The Fund had previously praised Pakistan’s commodity market reforms but has now allowed strategic interventions to safeguard national food security while maintaining fiscal discipline.
Hybrid Market Model Replaces Full Deregulation
Instead of fully deregulating the wheat market, the government has adopted a hybrid model that allows both state oversight and private participation. This approach aims to stabilize farmer incomes, prevent price crashes, and ensure long-term sustainability of Pakistan’s wheat supply chain, a shift that aligns both with IMF expectations and domestic agricultural priorities.
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