Pakistan's Wheat Shortage: A Symptom of Deeper Supply Chain Issues

Pakistan is facing a wheat shortage that goes beyond just numbers. The country is preparing to import 750,000 tonnes of wheat in an effort to control rising prices, but this move may not make flour significantly cheaper for consumers.

The government's policy has been criticized for arriving late and overpaying for emergency relief while neglecting the underlying issues. This cycle of mismanagement has become all too familiar: announcing support prices, procuring erratically, restricting trade, and then rushing to import or export.

Price controls suppress signals without reducing costs, and imports add grain but don't fix the problems in the supply chain from field to mill to household. Billions are spent, but accountability is lacking.

The winners of this policy failure are often large, politically connected growers who can influence support prices and secure procurement contracts. Traders, commission agents, and stockists profit from scarcity and sudden policy changes.