ISLAMABAD: Days after Punjab government set a wheat procurement price of Rs3,500, the Economic Coordination Committee (ECC) of the cabinet on Tuesday fixed an 8-18pc higher minimum reserve price for sale of 500,000 tonnes of commodity from the federal government stocks through open bidding.

A meeting of the ECC presided over by Finance Minister Muhammad Aurangzeb took up again a proposal of the Ministry of National Food Security regarding disposal of 500,000 tonnes of wheat stocks through competitive bidding. These stocks were held by Pakistan Agricultural Storage and Services Corporation (Passco) currently under winding up.

The committee was informed that an earlier attempt to sell the wheat at previously approved reserve prices could not be finalised due to lower bids received. In view of the existing stock position and associated carrying costs, the ECC approved the sale of 500,000 tonnes of wheat through competitive bidding on a First-In-First-Out (FIFO) basis at revised reserve prices of Rs4,150 per 40 kg for local wheat and Rs3,800 per 40 kg for imported wheat.

Punjab government has recently fixed minimum procurement price of Rs3,500/- per 40kg from farmers for the current season.

Approves Rs4,150 per 40kg reserve price for 500,000 tonnes

The ECC also approved on Jan 28 about 800,000 tonnes of Passco’s wheat amid allegations of waste of public funds on managing imported wheat stocks since 2021-22.

The ECC was then told that around 1.8m tonnes of wheat stocks were still lying with Passco. Around 550,000 tonnes of these stocks belonged to imports made from Ukraine in 2021-22, most of which are now reportedly beyond the category of human consumption.

The ECC had decided to offload 800,000 tonnes at an estimated cost of about Rs70 billion, which would still leave about one million tonnes in storage, largely in bad shape.

The ECC also approved a supplementary grant amounting to Rs536m for Public Sector Development Programme projects of the defunct Pakistan Public Works Department (Pak-PWD). The approved amount will be transferred to the Governments of Punjab and Khyber Pakhtunkhwa for specific ongoing projects in accordance with the relevant legal and constitutional provisions.

In addition to the regular agenda items, a summary by the Petroleum Division regarding a fact-finding report on the Deed of Settlement with Cnergyico PK Ltd, submitted in compliance with earlier ECC directions concerning delayed payment of petroleum levy, was also tabled and returned with the observations that a more comprehensive presentation be made in a subsequent meeting.

Published in Dawn, February 25th, 2026