Pakistan’s average wheat price reached a 29-month high on August 6, 2026, as limited domestic supplies and market shortages continued to drive prices higher. The increase has raised concerns over the possible impact on food inflation.
Topline Securities said the rise in prices was mainly linked to limited wheat availability in the local market. Demand from the provinces has remained higher than the wheat available in government reserves, leading authorities to consider additional imports to meet the shortfall.
The federal government has approved the import of around 1 million tonnes of wheat to help bridge the supply gap. The Economic Coordination Committee has also instructed the relevant authorities to speed up the import process. At the same time, existing PASSCO wheat stocks are being supplied to provinces based on their requirements.
The rise in wheat prices is expected to have different effects across the economy. Farmers could benefit from higher prices, as improved returns may support their incomes and rural economic activity. For consumers, however, the situation could mean more expensive flour and other wheat-based products if supplies remain tight.
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The impact is already being seen in the flour market, where prices have continued to increase as the government works to complete arrangements for wheat imports.
Wheat is one of Pakistan’s most important staple foods and accounts for a significant share of household food spending. If prices continue to rise for an extended period, they could put additional pressure on food inflation and contribute to higher overall consumer prices in the months ahead.
The government now faces the task of ensuring that imported wheat reaches the market quickly and is distributed effectively. Delays in addressing the supply shortage could put further pressure on prices.
With provincial demand reportedly exceeding the wheat available through PASSCO stocks, timely imports will be important to ease the shortage and prevent the current rise in wheat prices from developing into a wider food price problem.