Punjab, Sindh Backtrack on Imported Wheat Plans

Wheat flour prices up 77.5% YoY to Rs132.5/kg as provinces hold off on tripartite import agreement Wheat flour prices have surged 77.5% year-on-year, climbing to Rs132.5 per kilogram from Rs75, according to the Pakistan Bureau of Statistics, as a standoff between the federal government and two major provinces threatens to complicate Islamabad's plan to import a million tonnes of wheat. According to a report by The Express Tribune, Punjab and Sindh, the country's largest wheat-deficient provinces, have pulled back from committing to buy the imported grain, leaving the federal government to decide whether to fund the import alone from its own fiscal resources or scrap the plan entirely and risk a shortage. At steering committee meetings held on August 9 and August 12, both provinces indicated they no longer wanted imported wheat, preferring supplies drawn from federal stocks instead, Tribune cited a senior official as saying. A cabinet member added that the provinces have now been given one final chance to firm up their demands and state clearly whether imported wheat is actually needed, since federal reserves alone cannot cover provincial requirements. Punjab's position shifted notably over recent weeks — the province initially committed to buying one million tonnes, then scaled that down to 800,000 tonnes, before ultimately telling a meeting chaired by Food Minister Rana Tanveer Hussain that it did not require imported wheat at all. Hussain asked for the statement in writing, so Punjab could not later blame the Centre for any resulting shortage or price spike. The Punjab representative said the province was comfortably positioned after receiving 800,000 tonnes from federal stocks, including 533,000 tonnes still awaiting collection from Pakistan Agriculture Services and Storage Corporation (PASSCO) facilities, along with roughly 500,000 tonnes procured directly from farmers, against an original target of three million tonnes. Sindh followed a similar path. At a steering committee meeting on Wednesday chaired by Deputy Prime Minister Ishaq Dar, the province also expressed reluctance to accept imported wheat, despite having earlier requested 720,000 tonnes, of which 500,000 tonnes were to be imported. Dar's office issued a statement saying the committee had reaffirmed its decision to import one million tonnes to meet domestic needs, ease price pressure and provide relief to the public. Prime Minister's Coordinator on Agriculture Ahmad Umair said the federal government retains final authority over how much wheat is released from its reserves, adding that the current plan is to distribute both local and imported wheat to provinces on a proportionate basis. A separate official noted that even if provinces decline imported wheat in favour of federal stocks, the government will still need to import grain to protect its strategic reserves. Not all provinces are on the same page. A Khyber-Pakhtunkhwa representative criticised Punjab's reversal, arguing that Punjab's earlier claims of shortage had driven prices higher and disadvantaged his province. KP has maintained its request for 200,000 tonnes of imported wheat in addition to 200,000 tonnes of local supply. Provinces have been offered wheat at Rs4,150 per 40 kilograms — Rs650 above the rate paid to farmers. The government has already allocated one million tonnes of PASSCO wheat stocks on a proportionate basis, with Punjab receiving the largest share, followed by Sindh, Khyber-Pakhtunkhwa and Balochistan. To formalise the arrangement, the federal food ministry has drafted a Tripartite Agreement setting out the roles, responsibilities, financial terms and operational procedures governing the food ministry, provincial governments and the Trading Corporation of Pakistan (TCP) under the Wheat Import Programme. The draft was circulated to provinces and TCP for feedback by August 8, but as of Thursday, no province had responded, officials said.