The federal government has decided to exit the wheat procurement process in line with another condition of the International Monetary Fund (IMF) program, ending state-led purchases and the support price mechanism, according to a national daily.
The federal and provincial governments will now maintain only emergency wheat stocks, with total annual reserves capped at 6.2 million metric tons. Strategic reserves will no longer be procured by the government; instead, a private company will handle wheat purchases for both the federation and the provinces.
Under the new arrangement, the federal government will hold 1.5 million metric tons of wheat, Punjab 2.5 million metric tons, Sindh 1 million metric tons, Khyber Pakhtunkhwa 0.75 million metric tons, and Balochistan 0.5 million metric tons.
The private company will be responsible for purchasing wheat on behalf of the federation and provinces.
Sources said the Ministry of Industries and Production has confirmed that the private company will also arrange financing and storage. The government will only pay service charges, a move expected to save an estimated Rs. 570 billion annually.
The Ministry of National Food Security has allocated Rs. 30 billion for service charges. There will be no wheat support price, and prices will be determined in line with global market trends, using international benchmarks set by the ministry.
The IMF has also prohibited the federal government from fixing a support price for wheat. Previously, the government provided bank guarantees for wheat purchases, while the Pakistan Agricultural Storage and Services Corporation (PASSCO) carried out procurement.
Delays in payments to PASSCO contributed to food sector circular debt, which has now reached Rs. 270 billion.
And still imf conditions of transparency, reducing prices and helping economy are all ignored
Not buying wheat is a great step. It will make people go hungry those who need benefits and result in more rebellions
Calm down angry guy.
This is actually to improve transparency in procurement, reduce prices and improve economic condition. Basic english and research skills required.
How is government not buying wheat will make people go hungry? Why does it matter if a private company buys wheat or if govt buys it?
This step was long due to reduce corrupt practices from feudal land lords
People Will go hungry because Farmers don’t grow wheat out of thin air it’s a costly thing so if the end product doesn’t even cover the costs of growing it why would anyone want to do it bring wheat prices down when you have cheaper fuel, fertilizer, pesticides ,tillage equipment, tractors, harvesters, labour etc..and I’m afraid none of them is cheap so unless that’s resolved this is just going to hurt the farmers and wheat production in the country if there is no support price
Sorry to say this is not a pure exit from wheat procurement process, govt sets upper limit of price that is against the free market concept. Leave it free and let market decide .
Another year of decline in agriculture is ahead.
IMF Should Also Force Pakistan To Increase Agricultural Income Taxes and Increase Water Use Charges. Takay Aur Regulate Ho Agriculture Aur Tax to GDP Ratio Barhay.
Awkward moment when article is about Cheat and image is of Rice
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Awkward moment when article is about Wheat and image is of Rice
The prices of fertilizer and pest control sprays skyrockets at wheat planting season yet farmers are paid a pittance at harvest time. Last year subsistence farmers made a net loss from their wheat harvest and vowed to reduce wheat planting this year. 2 months ago the government promised a minimum of Rs 30000 per 400kg of wheat in order to increase wheat acreage. Next year the government will waste precious foreign currency purchasing extra wheat because farmers won’t have a decent incentive to plant wheat. The country needs to get out of these oppressive IMF conditions
Neither govt nor imf is in favor of people dont give false ustifications