Pakistan Orders Traditional Methods to Address Wheat Shortage
What happened
Deputy Prime Minister Ishaq Dar ordered the use of traditional methods to manage the ongoing wheat shortage in Pakistan. During a Cabinet committee review, he directed an end to hoarding and speculation, and ordered the release of wheat stocks to flour mills. This action follows a decision to set the indicative wheat price for the next season at Rs 4500 per maund, which is a substantial increase from the previous season's price.
From pakistantoday.com.pk
Why it matters
The current imbalance is linked to the International Monetary Fund requiring the abandonment of state support prices in favor of market pricing. Because the government lacks the enforcement mechanism of the old support price, rising prices are expected, and anti-speculation measures are currently weak.
From pakistantoday.com.pk
Who's involved
- Ishaq DarDeputy Prime Minister who ordered traditional methods to manage the wheat supply.
- PakistanThe sovereign state experiencing the wheat shortage and price volatility.
- Government of PakistanThe federal government that set the indicative wheat price but lacks enforcement power.
- International Monetary FundThe international financial institution that mandated the abandonment of the state support price.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- PakistanSpeculative
The wheat shortage and price volatility might impact national food security and supply chains.
- Government of PakistanSpeculative
The government of Pakistan could face reduced control over prices and speculation due to the loss of enforcement power.
The Pakistan Agricultural Storage and Services Corporation could see increased operational activity from the direct order to release wheat stocks.
Keep exploring
The entities involved
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Ishaq Dar
Deputy Prime Minister of the Islamic Republic of Pakistan
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Pakistan
sovereign state in South Asia