Govt to Seek IMF Nod for Wheat Price Support
The government will approach the International Monetary Fund (IMF) to restore the annual minimum support price (MSP) for wheat, a measure officials say is critical to reviving production that has suffered since the policy was scrapped.
Minister for National Food Security and Research Rana Tanveer Hussain told the National Assembly Standing Committee on Tuesday that Islamabad is pressing the IMF for flexibility on food-related measures. He said reduced state oversight had pushed wheat prices higher, forcing the government to weigh imports.
“If output falls another 6% this year, we may have to import $1.5 billion worth of wheat,” he warned. A new wheat policy is expected in the first week of October.
The committee, chaired by MNA Syed Hussain Tariq, also reviewed sugar production and trade. Hussain reported that sugar output this year reached just 5.8 million tons against expectations of 7.2 million tons, well below the 7.6 million tons produced last year. He said the country, after exporting $450 million worth of sugar without subsidies, is now importing $150 million worth to cover the shortfall. “The real reason behind the price hike is the sugar mafia,” he said.
Members raised concerns over rising sugar costs. Rana Hayat questioned why wheat prices had been stabilized but sugar remained volatile, cautioning that imports could harm farmers as the crushing season approaches.
The committee also reiterated its call for tobacco to be given greater policy attention. Lawmakers asked the Pakistan Tobacco Board to channel a portion of its funds into social welfare in tobacco-growing regions and to present updates on market price gaps for flavored tobacco and fillers. Tobacco companies were directed to submit written accounts of their key challenges and proposed solutions.
On broader agricultural policy, the ministry briefed lawmakers on the National Agriculture Biotechnology Policy (NABP) 2025, which focuses on genetically modified crops, new breeding tools, and biotechnology research. Lawmakers urged caution on the risks tied to biotechnology, warning against potential export rejections, and sought a Phase II feasibility report at the next meeting.
The committee also requested a detailed update on flood-related crop damage and stressed the need for stronger research and development in seed production.
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