IMF objects to wheat policy, Pakistan addresses concerns

ISLAMABAD: The International Monetary Fund (IMF) has raised objections to Pakistan’s newly approved wheat policy, but the government swiftly addressed the Fund’s concerns, clarifying that it had not set a fixed minimum support price for wheat, officials from the Ministry of National Food Security said on Thursday.

According to ministry sources, the IMF wrote a formal letter to the Food Ministry after the policy’s approval, seeking details about its framework and pricing mechanism. The Fund initially believed that Pakistan had fixed a support price for wheat — a step considered inconsistent with free-market principles.

Officials clarified in their written reply that the government had only introduced an “indicative price” instead of a fixed support rate, meant solely to guide farmers and prevent market distortion. The indicative price was calculated using the international benchmark for US Hard Red Wheat, priced at $238 per ton.

The ministry said the rate was determined after adding Karachi Port landing costs and transport expenses to Multan, bringing the estimated indicative price to about Rs3,500 per 40 kilograms. It stressed that the rate was flexible and would vary with global market trends.

According to officials, both the IMF’s objections and Pakistan’s explanation have been shared with the Prime Minister’s Office to align the wheat policy with international standards while protecting domestic agricultural interests. The government, officials added, aims to ensure farmers receive fair compensation while maintaining policy transparency and adhering to international financial commitments to support a sustainable food security framework.