ISLAMABAD: The IMF imposed yet another major condition, barring the federal and provincial governments from fixing support prices for all crops, including wheat and sugarcane.
This condition will affect the cash crops of wheat, sugarcane, and cotton, while due to restrictions on subsidy on fertilizers, farmers will have to buy expensive imported fertilizers.
Sources say that the implementation of the restrictions imposed by the IMF on support prices and subsidized fertilizers will start from the current crop (Kharif season), which has to be completed by June 2026.
The Punjab government has already started implementing these conditions, this season the Punjab government did not purchase wheat.
Due to this the price of both wheat and flour fell by 40% and inflation reached single digits.
The IMF has also imposed conditions on the provincial governments that they will not give any subsidy on electricity and gas during the IMF program (37 months).
The Ministry of Finance conveyed this message of the IMF to the Punjab government last week.
Earlier, when the report was published by the Express Tribune, the spokesperson of the Punjab government, Uzma Bukhari, denied it.
Sources say that according to the IMF conditions, the provincial governments will not be able to fix the support price of sugarcane and will not be able to ask the mills to start the crushing season.
It should be noted that the mill owners blame the expensive sugarcane as the reason for the expensive production of sugar.
Last season, the government fixed the sugarcane price at Rs 425 per maund, but the mills bought it at Rs 425 to Rs 480 per maund.
It should be noted that the Executive Board of the IMF has not yet approved the program for Pakistan, but has not only imposed the conditions but also wants to implement them.
The federal government purchases commodities mainly for military purposes and special areas like Gilgit-Baltistan.
