Pakistan's cabinet committee has green-lit the urgent import of one million tonnes of wheat, responding to a market crisis that has seen prices spike beyond Rs150 per kilogram. The decision came during an emergency session of the Economic Coordination Committee (ECC), convened with a single-point agenda to address the alarming shortage. Main Developments Finance Minister Muhammad Aurangzeb presided over the virtual meeting on July 29, 2026, and immediately formed a steering committee tasked with opening letters of credit (LCs) within 12 hours. According to an official statement, the committee will assess needs and devise an operational mechanism for the wheat import, while also monitoring the tendering process. Provinces have requested approximately 2.2 million tonnes of wheat to address shortages, with prices leaping from Rs125 to over Rs150 per kg in just one week. To bridge the gap, the government will supply 1.2 million tonnes from the defunct Pakistan Agricultural Storage and Services Corporation (Passco) stocks, while the remaining one million tonnes will be imported through the state-run Trading Corporation of Pakistan. Read also: Why Pakistan's border trade upgrade hinges on ADB approval Background The crisis stems from mismanagement in procurement from farmers, which led to a shortfall in domestic wheat availability. The Federal Wheat Board, led by Food Security Minister Rana Tanveer Hussain, had already decided a day earlier that provincial governments would provide back-to-back LCs for imports. If provinces fail to make payments, the federal government will deduct the amount from their share of the National Finance Commission Award. Why It Matters Soaring wheat prices directly impact household budgets across Pakistan, where wheat is a staple food. The government's swift action is critical to stabilizing the market and preventing further inflationary pressure. The import decision also highlights fiscal coordination challenges between the federal and provincial governments, as the funding mechanism relies on provincial cooperation. What's Next The steering committee will now work to open LCs within 12 hours and oversee the import process. The Federal Wheat Board's prior need assessment is expected to guide the operational plan. Provinces must align their procurement and payment schedules to avoid deductions from their NFC awards, as the government moves to ease the shortage in the coming weeks.