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IMF Raises Objections Over Pakistan’s Wheat Policy, Questions Minimum Support Price Clause
The IMF has raised concerns over Pakistan’s new wheat policy, objecting to the mention of a minimum support price. The Ministry of Food clarified that only an indicative price—not a fixed support rate—has been set based on global wheat benchmarks.
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by Muhammad Hashir
2025-10-23
IMF Raises Objections Over Pakistan’s Wheat Policy, Questions Minimum Support Price Clause

The International Monetary Fund (IMF) has expressed objections to Pakistan’s newly approved wheat policy, particularly regarding the fixing of a minimum support price, according to official sources.

After the policy’s approval, the IMF reportedly sent a letter to the Ministry of National Food Security and Research seeking clarification and detailed documentation of the new policy.

Sources revealed that in response, the ministry clarified that the support price was not officially fixed — describing the issue as a “misunderstanding.” However, the IMF continued to express reservations, interpreting the policy language as indicative of a minimum support price.

To address the concerns, the Ministry of Food Security explained that rather than a fixed support price, an indicative price had been determined. This price, the ministry said, was calculated using the benchmark of American international hard red wheat, priced at $238 per ton, adjusted for landing costs at Karachi.

Officials further detailed that the cost of transporting imported wheat from Karachi to Multan was also included in the estimate, bringing the final indicative cost to approximately Rs 3,500 per maund.

According to sources within the ministry, the IMF’s objections and the government’s explanations have been formally shared with the Prime Minister’s Office.

The clarification aims to assure the IMF that the wheat pricing mechanism remains market-aligned and does not conflict with the Fund’s policy prescriptions against state-controlled price fixing, which could distort market dynamics and fiscal balances.
Tagged:

IMF

PakistanEconomy

FoodSecurity

WheatPolicy
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