The government has resolved the International Monetary Fund’s (IMF) reservations regarding the wheat support price, sources said.
According to sources, the IMF had raised objections to the fixation of a minimum support price in the wheat policy. After the policy’s approval, the IMF informed the Ministry of National Food Security through an official letter.
The international lender also sought details of the wheat policy’s framework from the ministry, the sources added. In its response, the ministry clarified that no support price had been fixed and that the matter had been misunderstood.
Sources in the Ministry of National Food Security said the IMF believed that a minimum support price had been set, but the government explained that instead of fixing a support price, an indicative price had been determined.
The indicative price was calculated by referring to the international price of the United States’ hard red wheat, which stands at 238 dollars per tonne.
Sources said the indicative price was worked out after including landing costs in Karachi and transportation expenses from Karachi to Multan. After these calculations, the estimated price was determined at Rs3,500 per maund.
The IMF’s objections and the ministry’s clarification were also shared with the Prime Minister’s Office, the sources added.
