Pakistan cleared to purchase 6.2M tonnes of wheat under new IMF-approved policy
The IMF had prohibited Pakistan’s federal and provincial administrations from direct market interventions to curb fiscal leakages and price distortions.
PAKISTAN – Pakistan has secured approval from the International Monetary Fund (IMF) to procure 6.2 million tonnes of wheat in 2025 to rebuild its national reserves under the newly introduced Wheat Policy 2025/26.
The decision marks a major policy shift, balancing the country’s food security needs with fiscal discipline after years of IMF restrictions on government intervention in commodity markets.
According to the Ministry of Finance, the total procurement is expected to cost approximately 542 billion Pakistani rupees (US$1.92 billion).
The exercise will be undertaken jointly by the federal and provincial governments, with the federal authorities tasked with setting strategic stockpile targets to safeguard national food reserves.
The officially announced wheat price stands at 3,500 rupees (US$39.88) per 40 kilograms, an indicative rate influenced by international market dynamics and transportation costs.
Ahmed Umair, the Prime Minister’s Coordinator for Agriculture, clarified that this is “not a fixed support rate”, emphasizing that the IMF has approved the pricing framework to ensure domestic rates remain aligned with global benchmarks.
Previously, the IMF had prohibited Pakistan’s federal and provincial administrations from direct market interventions to curb fiscal leakages and price distortions.
The Fund’s recent green light for controlled purchases is seen as an endorsement of Islamabad’s reformed policy framework, which now prioritizes efficiency, transparency, and private sector participation in agricultural supply chains.
Under the new arrangement, Punjab province will procure 2.5 million tonnes, Sindh 1 million tonnes, Khyber Pakhtunkhwa 750,000 tonnes, and Balochistan 500,000 tonnes.
The federal government, meanwhile, will purchase 1.5 million tonnes through joint ventures with private operators.
Following the dissolution of the Pakistan Agricultural Storage and Services Corporation (PASSCO), licensed private companies will now handle wheat procurement, storage, and financing operations, a move aimed at modernizing the supply system and reducing the government’s financial burden.
Tensions, however, have emerged between the federal and Sindh governments over procurement pricing.
The Sindh administration, supported by the Pakistan Peoples Party’s Central Executive Council, has proposed a higher purchase price of 4,000–4,200 rupees (US$45.59-47.87) per 40 kg, citing the rising cost of inputs and inflationary pressures on farmers.
The federal government insists on maintaining price alignment with international levels to avoid renewed market distortions. The issue has been referred to Deputy Prime Minister Ishaq Dar for final mediation.
If implemented effectively, the Wheat Policy 2025/26 could set a precedent for market-oriented grain management in South Asia, combining state oversight with private-sector efficiency.
Meanwhile, global agri-market intelligence firm UkrAgroConsult has highlighted that reliable data and analytics are key to managing grain supply chains effectively.
Through its AgriSupp platform, which provides daily intelligence on Black Sea and Danube markets, analytical reports, and historical data, the firm underscores the importance of transparent information systems in ensuring food system resilience, particularly in import-dependent economies such as Pakistan.
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