Zafar Ali
Punjab’s recent curbs on interprovincial wheat movement have triggered shortages and price spikes in Khyber Pakhtunkhwa and Sindh, stirring a political and economic storm across the federation. While provincial officials describe the measures as “checkpoints” to regulate “unusual” flows, flour millers and politicians in the smaller provinces view them as a de facto ban. For wheat-deficit regions that rely heavily on Punjab’s surplus for their food security, these restrictions are nothing short of an existential threat.
The backlash has been swift and fierce. Flour mill owners argue that Punjab’s restrictions violate Article 151 of Pakistan’s Constitution, which guarantees freedom of trade, commerce, and intercourse among provinces. Political leaders, too, have condemned the policy. The PPP’s governor in Khyber Pakhtunkhwa called the move a “serious breach of national unity,” while the KP Assembly passed a resolution denouncing Punjab’s unilateral action. Sindh, equally alarmed, sees it as yet another attempt by Punjab to dominate a national commodity market that should remain open and fair.
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This is not the first time Pakistan has witnessed such turmoil. Wheat restrictions during 2020, 2022, and 2023 sparked nationwide crises, demonstrating how food insecurity rapidly transforms into political instability. What makes this episode different is Punjab’s retreat from its long-standing role as the stabiliser of the national market. Traditionally, the province procured and stocked over four million tonnes annually, ensuring supply flows to wheat-deficit regions. Now, by retreating into protectionist measures, Punjab has deepened market fragility instead of addressing it.
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The provincial government defends its policy as a response to surging flour prices in local markets. Yet the irony is striking: despite the restrictions, flour prices in Punjab have continued to rise. This exposes the lack of foresight in the policy. By prioritising immediate political optics over long-term stability, Punjab has not only undermined national cohesion but also created conditions for hoarding and artificial shortages. Such knee-jerk measures demonstrate that food security is being managed without strategic planning or interprovincial consultation.
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The economic consequences are equally alarming. Business confidence has been rattled. Private investors who were recently encouraged to finance bulk wheat procurement and warehousing under market reforms now find themselves blindsided by abrupt government intervention. What was supposed to be a deregulated, investment-friendly market has become an unpredictable battleground, where political compulsions trump market logic. Such reversals discourage private capital from investing in the very infrastructure that could enhance long-term stability in procurement, storage, and distribution.
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At the root of the crisis lies the flawed attempt to deregulate the wheat market without creating safeguards against profiteering. In the absence of checks and balances, market liberalisation created price arbitrage opportunities, particularly for traders supplying wheat to deficit provinces like KP and Sindh. Punjab’s knee-jerk restrictions are a reaction to this arbitrage, but they only worsen disparities instead of solving them. Instead of creating a uniform national policy, Punjab’s unilateral approach has heightened mistrust between provinces.
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The political cost of this dispute cannot be overstated. In a federation already riven with distrust, food insecurity has become a flashpoint for interprovincial tension. KP’s resolution against Punjab, Sindh’s growing anxiety, and the criticism by national parties suggest that this issue is not just about wheat but about the very cohesion of the federation. By unilaterally restricting flows, Punjab risks being seen as insensitive to the needs of smaller provinces — a perception that deepens political fault lines.
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The way forward lies in dialogue and consistent policymaking. The Council of Common Interests (CCI) must urgently take up this issue to ensure that one province’s attempt at short-term market management does not destabilise the entire federation. A coherent national wheat policy is needed — one that balances Punjab’s desire to control local prices with the constitutional rights of other provinces to secure affordable flour for their populations. Without such a framework, food insecurity will continue to ignite political crises.
What Pakistan needs is genuine market liberalisation coupled with strong regulatory oversight. Investors must be assured that their capital in procurement and warehousing will not be undermined by ad hoc restrictions. Consumers must be protected through transparent pricing mechanisms and well-managed reserves. Most importantly, provincial governments must recognise that wheat is not simply a commodity but the backbone of food security and national unity.
Punjab must therefore abandon protectionist impulses and return to its role as the stabiliser of the national wheat market. Anything less will not only destabilise flour prices across the federation but also erode public trust in the promise of interprovincial solidarity. National food security demands policies that are transparent, consistent, and above all, inclusive.
