IMF allows Pakistan to purchase 6.2 mln tons of wheat for reserves

The International Monetary Fund (IMF) has allowed Pakistan to purchase 6.2 million tonnes of wheat this year to replenish national reserves under the new Wheat Policy 2025/26. The government will determine the strategic stockpile targets. The procurement, which will cost about 542 billion rupees ($1.92 billion), will be carried out jointly by the federal and provincial governments.

The officially announced price of wheat is 3,500 rupees per 40 kilograms and is indicative, based on global market trends and transportation costs. According to Ahmed Umair, the Prime Minister’s Coordinator for Agriculture, this is not a fixed support rate. The IMF has approved this pricing methodology, which allows for domestic procurement prices to be aligned with international standards.

The IMF had previously barred Pakistan’s federal and provincial governments from intervening in commodity markets to minimize distortions that have led to a sharp decline in wheat prices. The IMF’s latest decision to allow limited purchases reflects confidence in Pakistan’s reformed policies, which now balance food security needs with fiscal responsibility.

Under the new policy, Punjab province will purchase 2.5 million tonnes, Sindh 1 million tonnes, Khyber Pakhtunkhwa 750,000 tonnes, and Balochistan 500,000 tonnes. The federal government will purchase 1.5 million tonnes through partnerships with the private sector. After the dissolution of the Pakistan Agricultural Storage and Services Corporation (PASSCO), licensed private operators will be responsible for procurement, storage, and financing.

The Sindh government has proposed a price of wheat of Rs 4,000-4,200 per 40 kg, which has been supported by the Central Executive Council of the PPP. However, the federal government is insisting on alignment with global prices to avoid market distortions. The issue has been referred to Deputy Prime Minister Ishaq Dar for a final resolution between the federal and Sindh governments.

Tags: Pakistan, wheat