The Ministry of National Food Security and Research is taking a major step to change how Pakistan manages its vital wheat stocks. The government is now moving to activate a public-private partnership (PPP) framework for buying wheat. This new system is a key part of the National Interim Wheat Policy for 2025-26.
A New Model to Ease Fiscal Burden
The main goal of this initiative is clear: to make sure the country always has enough wheat in reserve while reducing the heavy financial load on the national treasury. For a long time, the government, through the Pakistan Agricultural Storage and Services Corporation (PASCO) and provincial food departments, handled everything itself. This meant the public sector paid for the entire process—buying the wheat, storing it, and covering all the financing and operational costs.
The new PPP model is designed to tackle these public funding constraints head-on. It plans to use the financial strength and efficiency of private companies. Under the proposed system, private firms will get a license to buy wheat on the government's behalf specifically to build up the strategic wheat reserves. These reserves are crucial for national food security and keeping the market stable.
How the Public-Private Partnership Will Work
According to official documents, private sector involvement will be managed through a structured licensing process. The steps will start with prequalifying companies, followed by sending formal Requests for Proposals to those that are licensed.
Here is the key financial shift: Licensed private companies will use their own money or commercial loans to buy the wheat. The government's financial responsibility will be much smaller, limited to supporting costs like capital charges, interest, storage rentals, and other approved operational overheads. Most importantly, the actual cost of the wheat itself will be paid by the private sector.
This change is expected to significantly reduce the immediate fiscal pressure on the government. At the same time, it should guarantee that Pakistan's strategic wheat stocks are maintained without interruption.
Timelines and Scope of the Initiative
The ministry has already prepared tentative schedules for the wheat buying process. However, these timelines will only start once the prequalification document is issued. They are also dependent on getting all the necessary approvals and fully following the Public Procurement Regulatory Authority Rules from 2004.
It is important to note that this PPP plan focuses only on maintaining strategic reserves. Other projects and activities related to wheat will continue to be managed separately by the Plan Section of the Ministry of National Food Security and Research or its attached departments.
Overall, this move to a PPP-based model for wheat procurement marks a significant change in Pakistan's approach. It aims to protect the country's food security while encouraging better fiscal management and bringing the private sector into a critical national responsibility.
