IMF ‘stops’ Pakistan govt from setting support price for commodities

Author:

The International Monetary Fund (IMF) has imposed a strict condition on Pakistan’s federal and provincial governments as part of its $7 billion bailout package, barring them from setting support prices for key agricultural commodities, including wheat, sugarcane, and cotton.

This condition is part of a broader effort to reduce government spending and limit subsidies. The IMF’s directive mandates the gradual elimination of price-setting mechanisms by all five governments—federal and provincial—starting with the current Kharif crop season and concluding by June 2026. As a result, prices for essential crops like wheat, sugarcane, and cotton, along with imported fertilizers, will no longer benefit from government-set rates or subsidies.

In Punjab, the government has already halted wheat procurement from farmers, leading to a 40% drop in wheat and flour prices, which contributed to the country’s single-digit inflation rate last month. Additionally, the IMF has barred provinces from offering electricity and gas subsidies during the 37-month loan period.

While the IMF’s directives have been communicated to Punjab, provincial officials have denied receiving formal notice. Despite this, sources confirm that the conditions will be enforced, marking an end to government intervention in the agricultural market.

The policy change is expected to have a profound impact on the agricultural sector, especially the sugarcane industry, where price-setting by the government has long been a contentious issue between farmers and mill owners.

Share
Leave a Comment

Recent Posts

  • Business

Planning minister vows to increase ports’ efficiency, boost trade

Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Friday reaffirmed the government’s…

5 hours ago
  • Business

Commerce Minister reviews trade strategy

Federal Minister for Commerce, Jam Kamal Khan on Friday reviewed quarterly trade figures and stressed…

5 hours ago
  • Business

How Indian billionaire Gautam Adani’s alleged bribery scheme took off and unravelled

In June of 2020, a renewable energy company owned by Indian billionaire Gautam Adani won…

5 hours ago
  • Business

PSX continues with bullish trend, gains 469 more points

The 100-Index of the Pakistan Stock Exchange (PSX) continued with bullish trend on Friday, gaining…

5 hours ago
  • Business

Rupee gains 20 paisa against USD

Pakistani rupee on Friday appreciated by 20 paisa against the US dollar in the interbank…

5 hours ago
  • Business

Gold prices up by Rs.2,500 per tola

The price of 24 karat per tola gold increased by Rs.2,500 and was sold at…

5 hours ago