After reaching an agreement with the IMF, the government has decided not to declare a minimum wheat support price.

The federal government and the International Monetary Fund (IMF) have agreed to discontinue the wheat minimum support price (MSP) regime.

Following the agreement, no minimum support price (MSP) for wheat would be published for 2025-26. The Ministry of National Food Security and Research requested provinces to submit wheat food security recommendations based on their populations.

The ministry is also considering shutting the state-owned enterprise Pakistan Agricultural Storage & Services Corporation Ltd (PASSCO) owing to anomalies in wheat distribution and funding. The decision may have a substantial influence on wheat prices and the market, as PASSCO has 1.2 million metric tonnes of storage capacity and plays an important role in delivering wheat to provinces based on their needs.

Notably, the government traditionally bought wheat from farmers after declaring a minimum support price and then sent it to flour mills; nevertheless, the elimination of the support price was the IMF’s primary demand under the bailout package.