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Wheat Crisis Deepens as Punjab and Sindh Backtrack on Import Plan

The development came days after the federal government approved the import of one million metric tonnes of wheat to increase supplies and control rising prices.

Senior government officials told The Express Tribune that Punjab and Sindh have yet to provide formal feedback on a proposed tripartite agreement covering the wheat import programme.

The provinces initially expressed interest in imported wheat but later told the federal government that they needed wheat from federal reserves instead.

The shift has created uncertainty for the Centre. Officials said federal stocks cannot fully meet provincial requirements, making imports necessary to maintain adequate supplies and strategic reserves.

A cabinet member said the government had again asked the provinces to clearly state their requirements. The official said authorities wanted the provinces to confirm whether they actually needed imported wheat before finalising the programme.

The issue came up during steering committee meetings held on August 9 and August 12. Officials said both Punjab and Sindh indicated that they did not require imported wheat but wanted supplies from federal stocks.

Prime Minister’s Coordinator on Agriculture Ahmad Umair said the federal government would decide how much wheat to release from its reserves. He added that authorities planned to distribute local and imported wheat among provinces on a proportionate basis.

The Economic Coordination Committee (ECC) had created the steering committee to assess provincial requirements and establish a mechanism for wheat imports.

The committee also sought firm commitments from provincial governments on financing, logistics and procurement. The arrangement aimed to prevent additional financial pressure on the federal government.

Punjab had initially committed to buying 800,000 tonnes of wheat after earlier seeking one million tonnes. However, a provincial representative later told the committee that Punjab did not need imported wheat.

Punjab said it remained in a relatively comfortable position after receiving 800,000 tonnes from federal stocks. About 533,000 tonnes of that allocation reportedly remains available at Pakistan Agriculture Storage and Services Corporation (PASSCO) facilities.

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The province also procured around 500,000 tonnes directly from farmers against a target of three million tonnes.

Sindh also showed reluctance to purchase imported wheat during Wednesday’s meeting chaired by Deputy Prime Minister Ishaq Dar. The province had earlier sought 720,000 tonnes, including 500,000 tonnes of imported wheat.

Dar’s office, however, said the committee reaffirmed its decision to import one million tonnes to meet domestic demand, ease price pressure and provide relief to consumers.

The wheat supply dispute comes as flour prices have risen sharply. Pakistan Bureau of Statistics data showed average wheat flour prices reached Rs132.50 per kilogram, up 77.5% from Rs75 a year earlier.

Another government official said the Centre might still import wheat even if provinces preferred federal stocks. The official said the government needed imports to maintain strategic reserves after the existing stocks decline.

The federal government has already allocated one million tonnes of PASSCO wheat on a proportional basis. Punjab received the largest share, followed by Sindh, Khyber-Pakhtunkhwa and Balochistan.

Khyber-Pakhtunkhwa maintained its demand for 200,000 tonnes of imported wheat in addition to 200,000 tonnes of local wheat.

A K-P representative also questioned Punjab’s changed position. He argued that Punjab’s earlier claim of a shortage had contributed to rising prices and placed other provinces at a disadvantage.

The federal government currently supplies wheat to provinces at Rs4,150 per 40kg, which is Rs650 higher than the price offered to farmers.

Meanwhile, the Ministry of National Food Security has prepared a draft tripartite agreement for the Wheat Import Programme. The proposed agreement defines the responsibilities of the federal food ministry, provincial governments and the Trading Corporation of Pakistan (TCP).

The government circulated the draft to the provinces and TCP for comments by August 8. Officials said no provincial government had formally responded by Thursday.

Under the proposed arrangement, TCP would act only as the importing agency and would not carry financial liability. The food ministry would coordinate the programme without assuming contractual or financial obligations.

The agreement would take effect after all parties sign it and TCP confirms that the required conditions have been met or waived.

Provincial governments would also have to provide unconditional written commitments for their allocated quantities and maintain sufficient payment security throughout the programme.

The government has yet to decide whether to waive applicable taxes and duties on the imported wheat. The final decision rests with Prime Minister Shehbaz Sharif.

The standoff leaves Islamabad facing a difficult choice: finance the wheat imports from federal resources or risk delaying a programme designed to stabilise supplies and bring down soaring flour prices.

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