Pakistan to deregulate sugar and wheat prices: Finance Minister

KARACHI: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb announced that the government plans to deregulate and liberalize the sugar and wheat sectors, stressing that the state must withdraw from the entire value chain to promote market efficiency.

Speaking at an event hosted by the Karachi Chamber of Commerce and Industry (KCCI), the finance minister reaffirmed the government’s commitment to structural reforms, fiscal discipline, and strategic partnerships aimed at reshaping Pakistan’s economic direction.

He said that the government is going to deregulate sugar and wheat prices, emphasising that the deregulation process would be end-to-end.

“It is not possible to deregulate one element of the value chain while maintaining control over another,” Aurangzeb said. “The government has to get out of the entire value chain — that’s the direction we are heading in.”

He described current geopolitical tailwinds as a “golden opportunity” for Pakistan’s economic stability, citing strong support from partners including China, the United States, and Saudi Arabia.

“All these countries have supported us, and now discussions with them focus on trade and investment flows led by the private sector — not the government,” he added.

Referring to recent discussions during visits to the United States and Saudi Arabia, Aurangzeb said talks centered on promoting private-sector-led growth to make an economically independent Pakistan.

The finance minister said that the government’s role is to create an enabling ecosystem for the private sector to drive economic growth.

Responding to a question, he attributed the recent increase in tomato prices to the temporary closure of the Pakistan-Afghanistan border, which disrupted supply chains.

The Finance Minister reiterated that macroeconomic stability has been achieved and externally validated, with major rating agencies upgrading Pakistan’s outlook and the IMF’s second review under the ongoing program concluded successfully.

He also shared updates on the right-sizing of federal ministries and departments, closure of loss-making entities like Utility Stores Corporation and PASCO, and the transition to a defined-contribution pension scheme for new government entrants.