The International Monetary Fund (IMF) raised concerns about Pakistan’s new wheat policy after it appeared to fix a minimum support price. The IMF sent a formal letter to the Ministry of National Food Security, asking for clarification on the policy details. The issue emerged soon after the policy was approved by the government. This objection created confusion over whether the government had set a fixed price for wheat procurement.
In response, the Ministry of Food Security quickly explained that no fixed support price had been approved. Officials clarified that the misunderstanding came from a misinterpretation of the term “support price.” They said that instead of fixing a price, the government had only introduced an indicative price. This explanation helped the IMF understand the real intent behind the policy and eased its concerns.
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Furthermore, the ministry stated that the indicative price was based on global wheat trends. It was calculated using the international rate of U.S. Hard Red Wheat, which currently stands at $238 per ton. The ministry also added landing and transportation costs to this base price to estimate the local equivalent. This approach ensured that Pakistan’s wheat pricing aligns with international market conditions.
Officials revealed that transportation costs from Karachi to Multan were included while determining the indicative price. After accounting for all expenses, the estimated local price was Rs. 3,500 per 40 kilograms. This calculation was designed to maintain fair pricing for both farmers and importers. It also aimed to keep the local wheat market stable amid global price fluctuations.
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Lastly, the ministry confirmed that all IMF-related correspondence was shared with the Prime Minister’s Office. The government expressed its commitment to maintaining transparency and meeting international standards in food policy. With the IMF’s concerns now resolved, officials expect smoother cooperation in future agricultural policy matters. This resolution also signals Pakistan’s efforts to balance farmer support with fiscal responsibility.