akistan is passing through a critical phase of its economic stabilization. It needs to implement fundamental reforms to address long-standing structural challenges and fulfill its commitments to the international stakeholders. Among these reforms is the deregulation of the wheat sector, one of the key conditions of the current $7 billion 37-month Extended Fund Facility programme of the International Monetary Fund.

Under the IMF’s Memorandum of Economic and Financial Policies, Pakistan has committed itself to fully deregulating its agricultural commodity and input markets with the start of the fiscal year 2025-26. This initiative seeks to promote market efficiency, eliminate distortions caused by government interventions and align with global economic benchmarks.

The Ministry of National Food Security and Research has taken a proactive approach by organising a National Workshop on Deregulating the Wheat Sector, on January 24, in Islamabad. This workshop aims to build consensus among federal, provincial and regional stakeholders and develop a comprehensive strategy to ensure a smooth transition to a deregulated market while maintaining strategic wheat reserves.

Historically, the federal and provincial governments have announced support prices for wheat and engaged in procurement to stabilise prices and ensure food security. However, under the proposed deregulated regime, these practices will discontinue. Instead, a new entity, jointly owned by the federal and provincial governments, will oversee strategic reserves and address unforeseen food security emergencies. This entity, functioning as a para-statal or state-owned enterprise, will inherit storage facilities from the Punjab, Sindh and Pakistan Agricultural Storage and Services Corporation Limited, develop a modern business model and legal framework to ensure efficient operations.

The government’s commitment to deregulation reflects a broad strategy to address inefficiencies and encourage private sector participation in agricultural markets. Yet, significant challenges remain. Provincial food security plans must synchronise to prevent potential crises and mechanisms for maintaining buffer stocks and strategic reserves. Ensuring a balance between market-driven........

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