KARACHI: Pakistan’s top economic decision-making body on Wednesday approved the disposal of surplus government wheat stocks and a major inter-provincial allocation to stabilize domestic flour prices, as Islamabad seeks to manage food security risks while containing fiscal pressures.
The decisions come as Pakistan grapples with food inflation sensitivity, climate-related supply disruptions and the fiscal burden of carrying large public stocks. Wheat, the country’s staple food, is politically and economically critical because flour prices directly affect household inflation and living costs, and past volatility has triggered public unrest and costly emergency imports.
On Wednesday, the Economic Coordination Committee (ECC) of the Cabinet authorized the sale of 500,000 metric tons of wheat held by the Pakistan Agricultural Storage and Services Corporation (PASSCO), the federal grain procurement agency, through competitive bidding. It also approved the release of 300,000 metric tons to the Punjab government to ensure uninterrupted supplies to flour mills, according to an official statement issued by the Finance Division.
“The disposal of 500,000 metric tons of PASSCO wheat stock through competitive bidding aims at managing surplus stocks, reducing carrying and storage costs, and ensuring price stability in the domestic wheat market while safeguarding food security considerations,” the Finance Division said in a statement following the ECC meeting.
