Pakistan's Wheat Crisis Deepens as 4.5 Million Tons Go Missing

Pakistan's wheat management has come under scrutiny after the reported disappearance of nearly 4.5 million tons of wheat in Punjab, leaving authorities struggling to account for a substantial quantity despite a healthy harvest this year.

The development has intensified concerns that policy failures, weak procurement, and alleged hoarding have transformed what should have been a surplus season into a looming supply crisis. The government fixed the procurement price at Rs3,500 per maund, but private buyers considered the rate commercially unattractive, leading to Punjab relying on the private sector to procure wheat.

However, insiders claim this strategy backfired as traders sought bank financing to support purchases, while alleged hoarders purchased wheat directly from farmers for nearly Rs2,800 per maund. With official procurement falling well below expectations, flour prices have steadily increased across several cities, placing additional pressure on consumers already grappling with inflation.

The government has decided in principle to import one million tons of wheat after provinces sought additional supplies from the centre to stabilize flour prices and replenish dwindling stocks, marking a dramatic reversal for a country that had expected to remain self-sufficient following this year's harvest. The decision could cost between $350 million and $400 million, while additional purchases later in the season could push the import bill close to $1 billion.