ISLAMABAD: Prime Minister Shehbaz Sharif on Friday assured support to the government in Pakistan’s most populous Punjab province in exporting wheat and related products following the approval of a $53.5 million (Rs15 billion) wheat support fund for farmers.

The Punjab government on Wednesday unveiled the package aimed at supporting wheat farmers facing falling prices during the harvest season and as farmers staged protests across various parts of the province. The move is part of the federal and Punjab governments’ broader effort to support the agricultural sector amid rising input costs and climate-related challenges. 

Under the scheme, 550,000 wheat farmers will be given direct financial support through the Kisan Card. Additionally, the Punjab government plans to seek federal approval for the export of surplus wheat and related products. The Bank of Punjab will also finance private-sector efforts to renovate or construct warehouses to improve wheat storage infrastructure.

“The federal government will provide full support to the Punjab government in the export of wheat and wheat products,” Prime Minister Shehbaz Sharif’s office said in a statement.

Traders and industry representatives are advocating for the government to authorize the export of surplus wheat to stabilize the market and improve prices for farmers. Last year, farmers in Pakistan held weeks-long protests over lower wheat prices due to the import of excess amounts of the commodity that flooded local markets.

Pakistan has not allowed wheat exports since 2019-2020 due to domestic supply concerns and the need to ensure food security. This decision was also influenced by the farmer protests against wheat imports flooding the market. While the government aims to stabilize the domestic wheat market by regulating imports and exports, recent decisions have been met with criticism, particularly from farmers who feel their interests are being overlooked. 

Agriculture is the backbone of Pakistan’s economy and constitutes its largest sector. According to the Pakistan Bureau of Statistics (PBS), agriculture contributes about 24 percent of the Gross Domestic Product and accounts for half of employed labor force in the country.

In Pakistan, wheat crops are planted in mid-December and the harvest usually begins in March, with the majority of the crop harvested between April and early June.