Pakistan Seeks IMF Support to Restore Minimum Wheat Prices Amid Production Concerns
The government plans to approach the International Monetary Fund (IMF) to restore the annual minimum support price (MSP) for wheat, a move officials say is crucial to boosting production after the policy was previously scrapped.
Minister for National Food Security and Research, Rana Tanveer Hussain, told the National Assembly Standing Committee that Islamabad is requesting flexibility from the IMF on food-related measures. He warned that reduced state oversight had pushed wheat prices higher, forcing the government to consider imports.
“If output falls another 6% this year, we may have to import $1.5 billion worth of wheat,” Hussain said. A new wheat policy is expected in the first week of October.
The committee, chaired by MNA Syed Hussain Tariq, also reviewed sugar production. Sugar output reached 5.8 million tons, below the expected 7.2 million tons and last year’s 7.6 million tons. Despite exporting $450 million worth of sugar without subsidies, Pakistan is now importing $150 million worth to cover the shortfall. Hussain attributed the price surge to the so-called “sugar mafia.”
Lawmakers raised concerns over rising sugar costs, with Rana Hayat questioning why wheat prices were stabilized while sugar remained volatile. They cautioned that imports could harm local farmers as the crushing season approaches.
The committee also discussed tobacco policy, urging the Pakistan Tobacco Board to allocate some funds for social welfare in tobacco-growing regions and submit updates on market price gaps. Tobacco companies were directed to provide written accounts of challenges and proposed solutions.
On broader agricultural policy, the ministry briefed lawmakers on the National Agriculture Biotechnology Policy (NABP) 2025, focusing on genetically modified crops, new breeding tools, and biotechnology research. Lawmakers emphasized caution over biotechnology risks, including potential export rejections, and requested a Phase II feasibility report at the next meeting.
The committee also called for updates on flood-related crop damage and stressed the need for stronger research and development in seed production.
