The court has issued a detailed verdict regarding the government’s earlier wheat policy, emphasizing the balance between market deregulation and state intervention. According to the judgment, the government had earlier adopted a deregulation policy aimed at encouraging private sector participation in wheat procurement and trade. This policy allowed private players to freely purchase and move wheat across provinces, thereby promoting free market. However, the government later introduced measures such as fixing a Minimum Support Price (MSP) and imposing inter-provincial movement restrictions, which the court noted were inconsistent with the original spirit of deregulation.
The judgment further elaborated that while the government retains the authority to intervene in the market to ensure stability and food security, such interventions should be exercised through transparent bidding process. The court clarified that the government has the constitutional right to provide subsidies for price stabilization, but it should do so directly to beneficiaries rather than through indirect mechanisms that distort market operations. The petitioner had argued that the open market price of wheat was around PKR 3,500 per maund, whereas the MSP announced by the government was significantly lower, resulting in an imbalance between market realities and official price controls.
In its concluding remarks, the court stated that the government may procure wheat from private players through a transparent bidding process. This approach, the judgment noted, would ensure fair competition while maintaining adequate supplies for public needs. After this judgement government is considering to release its existing wheat stocks into the market. This measure aims to ease supply pressures, prevent artificial price hikes, and maintain affordability for the general population.
