Govt Plans Rs. 31 Billion Wheat Buffer Reserve Amid Middle East Tensions

The government is planning to maintain strategic wheat reserves with an estimated funding requirement of Rs. 31 billion to protect the country’s food security amid risks arising from the ongoing Middle East conflict.

During a recent meeting, the Economic Coordination Committee reviewed the wheat stock position at both provincial and federal levels. The Ministry of National Food Security and Research stressed the need to procure additional wheat stocks in line with the National Wheat Policy and to ensure future consumption requirements are met.

The ECC approved the procurement of 1 million metric tons of wheat for federal strategic reserves, including the annual requirements of Azad Jammu and Kashmir and Gilgit Baltistan, through a transparent competitive bidding process involving private sector stakeholders. The committee also directed the ministry to first utilize stocks available with PASSCO and commercial reserves before considering imports.

The food ministry also proposed incentives for wheat farmers to encourage local cultivation and reduce dependence on imports. Officials highlighted that wheat remains Pakistan’s staple food crop, cultivated over nearly 22 million acres with average annual production of 28 to 30 million metric tons.

Under the broader wheat policy framework, total strategic reserves of 6.5 million tons are planned through federal and provincial procurement. The federal government’s share stands at 1.5 million tons, while Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan will procure the remaining quantity through their respective allocations.

On the financial side, the ECC directed the Food Ministry and the Finance Division to hold detailed consultations on the proposed Rs. 31 billion funding plan and resubmit a refined proposal by mid-May, as the government moves to strengthen food security and support domestic wheat production.