The government is preparing to take an important step towards liberalizing the wheat market, in line with the structural reforms approved by the International Monetary Fund. To formulate a comprehensive strategy, the Ministry of National Food Security and Research (MNFS&R) will host a national workshop on liberalization of the wheat sector on Friday, January 24, 2025 in Islamabad.
This initiative confirms the government’s commitment to moving towards a transparent and efficient wheat market while protecting national food security through strategic reserves. Representatives from all provinces, including food secretaries and industry experts, will deliberate on key challenges and propose solutions to modernize wheat procurement practices.
The workshop will serve as a platform for stakeholders to address regulatory challenges, explore innovative approaches, and ensure that the deregulation process balances market efficiency and food security. To encourage broad participation, the Ministry arranged accommodation and travel for attendees abroad.
Prime Minister Shehbaz Sharif had earlier assigned a high-level committee, led by Finance Minister Muhammad Aurangzeb, to develop a wheat procurement plan for the food year 2024-2025 in line with the recommendations of the International Monetary Fund. The committee also includes the Ministers of National Food Security, Research and Trade and the Prime Minister’s Advisor on Political Affairs and Inter-Provincial Coordination. Their powers include reviewing wheat prices, purchasing mechanisms, and ensuring price stability.
The Economic Coordination Committee of the Council of Ministers had previously directed the Ministry of Nutrition and Natural Resources to prepare a strategy for the government’s phased withdrawal from wheat procurement and distribution. As part of this shift, PASSCO (Pakistan Agricultural Storage and Services Corporation) reported that its carryover wheat inventory as of April 2024 stood at 7.266 million metric tons (MMT), including 1.785 MMT purchased domestically during the year.
However, concerns about the quality and usability of old imported stocks have led to adjustments in wheat release ratios. While a 50:50 ratio has been approved for the release of domestic and imported wheat, specific regions such as Gilgit-Baltistan and Azad Jammu and Kashmir have called for a complete switch to domestic wheat, citing quality and taste preferences. The upcoming workshop is likely to address these regional demands along with broader deregulation challenges.
The liberalization of Pakistan’s wheat market comes at a time when the country is facing enormous pressure to meet the conditions of an IMF loan and stabilize its economic outlook. The government aims to introduce reforms that aim not only to modernize the wheat sector, but also ensure long-term food security for the population.
This workshop represents a critical step in strengthening collaboration between federal and provincial stakeholders, paving the way for a sustainable, deregulated wheat market.