Another IMF Condition Met: Govt Exits Wheat Procurement

[hydrabadi_arab]

Another IMF Condition Met: Govt Exits Wheat Procurement​

By Business Desk Published Dec 24, 2025 8:05 pm

The federal government has decided to exit the wheat procurement process in line with another condition of the International Monetary Fund (IMF) program, ending state-led purchases and the support price mechanism, according to a national daily.

The federal and provincial governments will now maintain only emergency wheat stocks, with total annual reserves capped at 6.2 million metric tons. Strategic reserves will no longer be procured by the government; instead, a private company will handle wheat purchases for both the federation and the provinces.

Under the new arrangement, the federal government will hold 1.5 million metric tons of wheat, Punjab 2.5 million metric tons, Sindh 1 million metric tons, Khyber Pakhtunkhwa 0.75 million metric tons, and Balochistan 0.5 million metric tons.

The private company will be responsible for purchasing wheat on behalf of the federation and provinces.

Sources said the Ministry of Industries and Production has confirmed that the private company will also arrange financing and storage. The government will only pay service charges, a move expected to save an estimated Rs. 570 billion annually.

The Ministry of National Food Security has allocated Rs. 30 billion for service charges. There will be no wheat support price, and prices will be determined in line with global market trends, using international benchmarks set by the ministry.

The IMF has also prohibited the federal government from fixing a support price for wheat. Previously, the government provided bank guarantees for wheat purchases, while the Pakistan Agricultural Storage and Services Corporation (PASSCO) carried out procurement.

Delays in payments to PASSCO contributed to food sector circular debt, which has now reached Rs. 270 billion.

 

[safriz]

PIA sold. Food security sold.... what else is yet to be sold by this regime?
Even strategic reserves will be bought for the government by a middle man, raising the price?
So far government used to buy directly frpm the farmer, keeping the price low.

 

[Oldenwisdom...قول بزرگ]

PIA sold. Food security sold.... what else is yet to be sold by this regime?
Even strategic reserves will be bought for the government by a middle man, raising the price?
So far government used to buy directly frpm the farmer, keeping the price low.

Whoever controls money, controls power!
IMF is a tool to keep the bottom meandering and not find a head.
Everything is artificially propped up or directed to keep the means of control intact.

That is a direct consequence of sleepwalking into the fiat trap... from interchangeability in precious metals to infinite fiat. The controls set than now enforce hot air as instruments of control and ... the mechanisms that set boundaries and enforce compliance.

 

[Distant_Observer]

Whoever controls money, controls power!
IMF is a tool to keep the bottom meandering and not find a head.
Everything is artificially propped up or directed to keep the means of control intact.

That is a direct consequence of sleepwalking into the fiat trap... from interchangeability in precious metals to infinite fiat. The controls set than now enforce hot air as instruments of control and ... the mechanisms that set boundaries and enforce compliance.

This is last chance saloon for Pakistan to get it right. They must fix their economy within the next 5 years.

 

[Oldenwisdom...قول بزرگ]

fix

That "fix" is what IMF intends to control. Capital controls are gatekeeping $37 Trillion in debt from realizing...
The whole game of fiat is rigged... strengthening traded currencies against dollar would make their debts meaningless ... for that reason East Asian economies kept buying the bonds, their populations bonded to prop up consumer demand in the US and now it is becoming impossible... the Japanese must raise their rates and stop the Yen carry trade...
Chinese sensing the danger are simultaneously divesting into a parallel system... ready and able to step in as soon as needed. A ready replacement. And inside the US, the final trick, a reset, swap dollar with crypto as was transitioned previously between gold to fiat. This final transition in a tokenized economy is access control... both for food and shelter to keep the bottom grinding.

 

[mythbuster]

That "fix" is what IMF intends to control. Capital controls are gatekeeping $37 Trillion in debt from realizing...
The whole game of fiat is rigged... strengthening traded currencies against dollar would make their debts meaningless ... for that reason East Asian economies kept buying the bonds, their populations bonded to prop up consumer demand in the US and now it is becoming impossible... the Japanese must raise their rates and stop the Yen carry trade...
Chinese sensing the danger are simultaneously divesting into a parallel system... ready and able to step in as soon as needed. A ready replacement. And inside the US the final trick reset the dollar with crypto as was transitioned previously between gold to fiat. This final transition in a tokenized economy is access control... both for food and shelter to keep the bottom grinding.

IMF is not the enemy with nefarious design , IMF is not asking Pakistan to do something that it shouldn't have done on her own without outside pressure.

 

[Oldenwisdom...قول بزرگ]

IMF is not the enemy with nefarious design , IMF is not asking Pakistan to do something that it shouldn't have done on her own without outside pressure.

IMF is not a friend either. It is a gatekeeper!
Fiat is a money glitch and those who give it value plunder it like no tomorrow.
IMF manages that for the empire.

 

[PakFactor]

Whoever controls money, controls power!
IMF is a tool to keep the bottom meandering and not find a head.
Everything is artificially propped up or directed to keep the means of control intact.

That is a direct consequence of sleepwalking into the fiat trap... from interchangeability in precious metals to infinite fiat. The controls set than now enforce hot air as instruments of control and ... the mechanisms that set boundaries and enforce compliance.

I do agree with you that the IMF is a tool, and the tool is as good as its user. We must remember that it was Pakistan that went to the IMF, World Bank, and Paris Club more than 20 times during its existence, not the other way around.

The most the IMF can do is help you establish policies to rectify issues and inject liquidity so you can continue operations. The loan enables borrowers in difficulty to rebuild their international reserves, stabilize their currency, and continue making their import payments, issues that Pakistan faced.

As for fiat currency, it eliminates one central problem in international trade: physical gold and silver were too cumbersome to move and insufficient for international exchange as borrowing needs grew; there wasn't enough gold to back dollars, among other issues. There were other issues with the Brenton Woods system, as you can search. Thus, Nixon took a correct course of action, be it forced. So, unless there is something better, this was the best solution post-World War II and its aftermath.

 

[Cookie Monster]

PIA sold. Food security sold.... what else is yet to be sold by this regime?
Even strategic reserves will be bought for the government by a middle man, raising the price?
So far government used to buy directly frpm the farmer, keeping the price low.

Selling PIA after years of corrupt policies(and therefore losses years after years) was an okay move with far less consequences. Not buying wheat and other such crops and letting private companies handle it...will have far reaching consequences.

It would be disastrous for farmers and for the population overall. If they overproduced wheat, rice, or whatever other crop for a season...the private companies would offer to buy it for far cheaper(due to excess supply). Depending on certain factors...in some scenarios it might not even cover the cost of fertilizers, pesticides, and labor..let alone turn a profit. This might cause a knee jerk reaction..leading some to absorb the losses for that one time..and next time not produce(or intentionally produce far less) of the crop to keep the prices up ...or instead opt for some other crop where they see more profit...
...those who won't be able to handle such financial ups and downs..will turn to loans...and may even bankrupt them.

Large scale production of crops that are needed for survival should be carried out in a somewhat socialistic manner...with the government acting as the entity that stabilizes prices ensures a steady stock...this is literally a matter of life and death.

 

[Meengla]

IMF is not the enemy with nefarious design , IMF is not asking Pakistan to do something that it shouldn't have done on her own without outside pressure.

Right.
Reminds me of the Argentina from a few decades ago blaming the IMF for all their ills while the Argentinians were living high. IMF is like the 'Iron Bank' of the 'Game of Thrones'. $$$ is more important but could also be used by big powers with stake in the Iron Bank occasionally but basically IMF is about $$.

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[HAIDER]

@Persian Gulf ... there was era in Iran when US forced Iran to import wheat ..somewhere around Musadiq era ?

 

[东风夜放花千树]

Capital institutions providing loans to sovereign countries, having already earned interest income, should be considered a commercial activity. They have no right to demand political conditions from sovereign countries.

Pakistan should establish a reliable public-private cooperative company to purchase crops from farmers, with prices set with government participation. This would ensure national food security while protecting farmers' interests.

The United States has launched food wars against China multiple times. Currently, China's grain reserves are managed by companies established by the state. China defines these companies as "large state-owned enterprises crucial to national security and the lifeline of the national economy." After meeting national reserve requirements, the remaining grain can be traded as commercial goods.

It is shameful to threaten a country with food security, and using hunger as a weapon is inhumane. However, based on the past actions of the US, Western countries, and Israel, such situations are likely to continue.

 

[PakFactor]

Capital institutions providing loans to sovereign countries, having already earned interest income, should be considered a commercial activity. They have no right to demand political conditions from sovereign countries.

Pakistan should establish a reliable public-private cooperative company to purchase crops from farmers, with prices set with government participation. This would ensure national food security while protecting farmers' interests.

The United States has launched food wars against China multiple times. Currently, China's grain reserves are managed by companies established by the state. China defines these companies as "large state-owned enterprises crucial to national security and the lifeline of the national economy." After meeting national reserve requirements, the remaining grain can be traded as commercial goods.

It is shameful to threaten a country with food security, and using hunger as a weapon is inhumane. However, based on the past actions of the US, Western countries, and Israel, such situations are likely to continue.

It's why smart countries diversify and invest in new technologies to increase yields, storage capacity, and related areas. Food security should always be viewed through the lens of national security.

 

[Owaiz]

Another IMF Condition Met: Govt Exits Wheat Procurement​

By Business Desk Published Dec 24, 2025 8:05 pm

The federal government has decided to exit the wheat procurement process in line with another condition of the International Monetary Fund (IMF) program, ending state-led purchases and the support price mechanism, according to a national daily.

The federal and provincial governments will now maintain only emergency wheat stocks, with total annual reserves capped at 6.2 million metric tons. Strategic reserves will no longer be procured by the government; instead, a private company will handle wheat purchases for both the federation and the provinces.

Under the new arrangement, the federal government will hold 1.5 million metric tons of wheat, Punjab 2.5 million metric tons, Sindh 1 million metric tons, Khyber Pakhtunkhwa 0.75 million metric tons, and Balochistan 0.5 million metric tons.

The private company will be responsible for purchasing wheat on behalf of the federation and provinces.

Sources said the Ministry of Industries and Production has confirmed that the private company will also arrange financing and storage. The government will only pay service charges, a move expected to save an estimated Rs. 570 billion annually.

The Ministry of National Food Security has allocated Rs. 30 billion for service charges. There will be no wheat support price, and prices will be determined in line with global market trends, using international benchmarks set by the ministry.

The IMF has also prohibited the federal government from fixing a support price for wheat. Previously, the government provided bank guarantees for wheat purchases, while the Pakistan Agricultural Storage and Services Corporation (PASSCO) carried out procurement.

Delays in payments to PASSCO contributed to food sector circular debt, which has now reached Rs. 270 billion.

Another stake in the heart of small farmers. Waderas and Patwaris will continue to be protected.

 

[Michael]

Capital institutions providing loans to sovereign countries, having already earned interest income, should be considered a commercial activity. They have no right to demand political conditions from sovereign countries.

Pakistan should establish a reliable public-private cooperative company to purchase crops from farmers, with prices set with government participation. This would ensure national food security while protecting farmers' interests.

The United States has launched food wars against China multiple times. Currently, China's grain reserves are managed by companies established by the state. China defines these companies as "large state-owned enterprises crucial to national security and the lifeline of the national economy." After meeting national reserve requirements, the remaining grain can be traded as commercial goods.

It is shameful to threaten a country with food security, and using hunger as a weapon is inhumane. However, based on the past actions of the US, Western countries, and Israel, such situations are likely to continue.

During the negotiations for China's entry into the WTO, one of the conditions was that China had to open either its wheat or soybean market. After weighing the pros and cons, the Chinese government agreed to open the soybean market while keeping the wheat market protected.
Subsequently, American soybeans quickly dominated the Chinese market. In the ensuing struggles, China paid a heavy price for this initial decision.

Pakistan will pay a heavy price for today's decision.