Pakistan to seek IMF approval for restoring minimum support price for wheat amid production decline, price hike

Minister for National Food Security and Research, Rana Tanveer Hussain, informed the National Assembly Standing Committee on National Food Security and Research on Tuesday that the government has decided to move to the International Monetary Fund (IMF) for the restoration of the annual minimum support price (MSP) for wheat, which has been abolished in recent years.

The government’s move to approach the IMF follows concerns over rising wheat prices and reduced control over the market, which has led to further price surges. The government is attempting to negotiate greater flexibility on food items with the IMF, in a bid to stabilise the wheat sector.

The committee also reviewed the country’s sugar situation. While Pakistan produced 7.6 million tons of sugar last year—surpassing national demand—this year’s production has fallen short, with an output of just 5.8 million tons. The shortfall has forced Pakistan to import sugar worth $150 million, despite the previous surplus.

The minister attributed the price hikes to the influence of the “sugar mafia” but assured that efforts were underway to reduce sugar prices, which had dropped from Rs 210 per kg. Committee member Rana Hayat expressed concern about the government’s inability to control sugar prices in the same way as wheat, questioning why sugar prices were not stabilized with the same measures.

The committee was briefed on the National Agriculture Biotechnology Policy (NABP) 2025, which addresses challenges such as population growth and climate change impacts.

Concerns were raised about the decline in crop yields in Pakistan compared to neighboring countries, with the committee recommending further precautions regarding the side effects of biotechnology on crop sustainability.

The meeting was attended by senior officials of the Ministry of National Food Security and Research, as well as several Members of the National Assembly, including Rana Muhammad Hayat Khan, Nadeem Abbas, and Chaudhry Iftikhar Nazir.

Tags: sugar, Pakistan, Production, wheat, imports, International Monetary Fund, Minimum Support Price