ISLAMABAD: Pakistan’s Economic Coordination Committee (ECC) on Tuesday approved the sale of 500,000 metric tons of wheat at revised reserve prices after an earlier attempt to offload the stock failed due to insufficient bids, according to a statement issued by the Finance Division.
The move comes as the government seeks to reduce mounting wheat inventories held by the Pakistan Agricultural Storage and Services Corporation (PASSCO) and cut associated storage and financing costs amid fiscal consolidation under a $7 billion International Monetary Fund (IMF) stabilization program. Wheat pricing is politically sensitive in Pakistan, where flour is a staple commodity and closely linked to inflation.
Managing excess procurement stocks has become a balancing act for policymakers, who are attempting to control food inflation while limiting subsidy pressures and budget deficits.
“The Committee was informed that an earlier attempt to sell the wheat at previously approved reserve prices could not be finalized due to lower bids received,” the Finance Division said in its statement.
The ECC approved the disposal of wheat through competitive bidding on a First-In-First-Out (FIFO) basis at revised reserve prices of Rs4,150 ($14.8) per 40 kilograms for locally procured wheat and Rs3,800 ($13.6) per 40 kilograms for imported wheat.
