Pakistan has received approval from the International Monetary Fund (IMF) to purchase 6.2 million tonnes of wheat this year, a key move to replenish the country’s dwindling reserves. The IMF’s approval comes after key amendments in the wheat procurement process, which had previously been restricted, The Express Tribune reported.
On Sunday, the federal government approved the Wheat Policy for 2025–26, setting the procurement price at Rs3,500 per 40 kilograms. This price aims to ensure fair compensation for farmers, support national food security, and strengthen the country’s strategic reserves.
The IMF had previously banned government intervention in commodity markets, including wheat procurement, to prevent market distortions and ease pressure on provincial budgets.
The announcement of the wheat policy followed discussions between the federal and provincial governments, during which there was some disagreement over the wheat price. The Sindh government proposed a price of Rs4,000 per 40 kg, while the federal government maintained Rs3,500 per 40 kg, aligning with global price trends. The disagreement led to the issue being referred to Deputy Prime Minister Ishaq Dar for further negotiations with Sindh.
Ahmed Umair, the Prime Minister’s Coordinator on Agriculture, clarified that the Rs3,500 price is not a fixed support price, but rather a reference point tied to international wheat prices. The price could be revised as market conditions change.
Umair stated, “The discrepancy over wheat procurement price and strategy has been addressed,” and added that the IMF’s approval would support Pakistan’s $7 billion program, as the IMF had previously emphasized the success of commodity market reforms.
He also reassured that the Rs3,500 price would benefit both consumers and farmers, reflecting the actual price of wheat imports, including transportation costs. Umair noted that the pricing methodology had been shared with and endorsed by the IMF.
Under the procurement plan, the federal government will purchase 1.5 million metric tonnes of wheat through the private sector, including 500,000 tonnes for special areas. Punjab will procure 2.5 million tonnes, Sindh 1 million tonnes, Khyber Pakhtunkhwa 750,000 tonnes, and Balochistan 500,000 tonnes.
Sindh will procure its 1 million tonnes independently, without the involvement of the private sector. The total cost of storing the 6.2 million tonnes for one year is estimated at Rs125 billion, with private sector companies handling the procurement and storage, compensated for their services.
While Pakistan had initially planned to deregulate wheat imports and exports by next year, the government has decided to maintain some restrictions. This shift has sparked debate, as deregulating the wheat market was seen as a potential way to level the playing field for farmers and reduce financial losses.
The IMF’s first review report had highlighted Pakistan’s commitment to implementing a new framework for the wheat sector, with promises to reduce procurement operations and benefit consumers through lower wheat prices. However, recent decisions indicate a shift in the government’s approach to managing the wheat market.
