The Pakistan government has approved the sale of 500,000 metric tons of subsidised wheat in the open market, a decision taken on January 29, 2026. This includes nearly 300,000 metric tons of imported wheat, potentially resulting in a loss of Rs2,355 per 40-kilogram bag to the national exchequer.
The Economic Coordination Committee (ECC) of the cabinet decided to sell the wheat at a loss, highlighting issues in federal economic planning. The imported wheat, stored since 2022 by the Pakistan Agriculture Storage and Services Corporation (PASSCO), is to be sold below its cost of purchase and storage.
Why is subsidised wheat approved?
The ECC approved the sale to manage surplus stocks, reduce storage costs, stabilize domestic prices, and safeguard food security. The Finance Ministry’s statement noted that the wheat would be sold through competitive bidding, with a reserve price set below the cost of Rs4,742 per 40 kg for local wheat and Rs6,425 per 40 kg for imported wheat.
Additionally, 300,000 metric tons of wheat will be provided to the Punjab government at a reduced rate to maintain supplies for flour mills and stabilize prices. The federal government will bear a Rs4.4 billion loss on this transaction.
The ECC’s decision follows a period of poor planning, with farmers suffering losses due to abrupt government decisions and falling prices. The Finance Ministry will provide a Rs20 billion subsidy to dispose of the wheat stocks, including an immediate Rs9 billion payout.
The National Wheat Oversight Committee, chaired by Food Security Minister Rana Tanveer Hussain, reviewed the wheat situation and expressed satisfaction with current reserves. The meeting emphasized inter-provincial cooperation and effective monitoring to protect farmers.
The continued retention of imported wheat has led to escalating costs, and any disposal delay could pressure market prices during the Rabi season. The ECC’s actions aim to ensure market stability and food security as Pakistan navigates these economic challenges.
Published in SouthAsianDesk, January 29th, 2026
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