Pakistan : Govt to Let Markets Decide Sugar and Wheat Prices
Pakistan is advancing reforms to reduce government intervention in wheat and sugar markets, shifting procurement and pricing toward private-sector, market-based systems. Planned measures include limiting state wheat releases to emergencies and liberalizing sugar trade, pricing, zoning, and licensing rules to improve efficiency and reduce fiscal pressures.
Pakistan is moving toward reducing government intervention in the wheat and sugar markets as part of broader economic reforms aimed at removing market distortions and encouraging private investment, productivity, and efficiency.
According to reform plans outlined under ongoing policy commitments, authorities believe scaling back state involvement will strengthen price discovery mechanisms, a move considered critical amid heightened volatility in international food prices.
Under the proposed framework, governance arrangements for strategic wheat reserves will remain in place, but procurement will increasingly be conducted through the private sector at prices aligned with international markets.
Government wheat releases will be restricted to officially declared emergency situations.
In the sugar sector, federal and provincial governments are progressing toward adopting a new national sugar policy, targeted for completion by June 2026.
The policy proposes the removal of zoning and licensing restrictions, an end to administered sugarcane and sugar pricing, and the liberalization of imports and exports under transparent and phased implementation rules.
Officials say the reforms aim to transition both sectors toward market-based pricing while improving efficiency and reducing fiscal pressures caused by state intervention.
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Source : Pro Pakistani
