IMF-driven wheat market deregulation stepped up

ISLAMABAD: Pakistan has ramped up efforts to deregulate its wheat sector to meet a major condition of the International Monetary Fund’s (IMF) 37-month Extended Fund Facility.

The condition requires deregulation of agricultural commodity and input markets starting from the current fiscal year.

As per the Fund’s Memorandum of Economic and Financial Policies for the 37-month Extended Fund Facility, Pakistan has agreed to fully deregulate its agricultural commodity and input markets starting from the fiscal year 2025-26. The move is part of broader economic reforms aimed at ensuring market efficiency and meeting the IMF’s structural benchmarks.

The wheat sector — a cornerstone of the country’s food security and a symbol of entrenched state intervention — will serve as a litmus test for these ambitious reforms.

Aimed at charting a roadmap for these reforms, the Ministry of National Food Security and Research (MNFSR), with support from the Asian Development Bank (ADB), on Friday convened a high-profile workshop.

Provincial officials, private-sector representatives, and international development partners gathered to explore strategies for overhauling the wheat sector.

The government reaffirmed its resolve to implement wheat market deregulation without restrictions on wheat movement. Industry representatives pledged investment in modern storage facilities and supply chain optimisation. Digital trading platforms and precision agriculture were highlighted as key areas for development, while participants stressed the importance of strategic partnerships to ensure food security and economic sustainability.

The workshop commenced with opening remarks by Secretary MNFSR Waseem Ajmal Chaudhry, who emphasised the importance of a collaborative, multi-stakeholder approach to wheat market reforms. By ensuring participation from all provinces, the ministry aimed to formulate policies reflective of ground realities across Pakistan.

Dr Akmal Siddiq, Technical Adviser, MNFSR, emphasised the crucial role of provincial authorities in implementing deregulation frameworks. Oliver Durand, Lead Agriculture Specialist at the World Bank, pointed out Pakistan’s low wheat productivity and the need for strategic investments in the value chain to boost efficiency. A comprehensive review of wheat price trends (2009–2023) provided critical context on economic challenges and policy gaps.

Presenters outlined plans to modernise grain storage infrastructure, focusing on efficiency, food safety, and private-sector investments in strategic wheat reserves. The workshop also stressed the need for digitized trading platforms to empower farmers, improve access to markets, and enhance transparency in commodity trading.

Representatives from all provinces shared their roadmaps for wheat sector reforms, highlighting key hurdles such as infrastructure deficits, policy misalignment, and resource constraints. The Ministry assured participants of its dedication to resolving these challenges through a robust national policy.

Private sector representatives voiced their support for deregulation, stressing that an open-market system would drive innovation, competition, and investment. However, they also called for clear policy direction and a stable regulatory framework to ensure a fair and transparent trading environment.

In his concluding remarks, Federal Minister for Food Security and Research, Rana Tanveer Hussain, reaffirmed the government’s unwavering resolve to implement wheat market deregulation in its true spirit. He emphasised the unrestricted movement of wheat across the country, the adoption of modern agricultural practices and technology-driven solutions, and the strengthening of public-private partnerships to ensure food security and economic sustainability.