Understanding the wheat ‘crisis’ in Pakistan

Agriculture is pivotal to Pakistan’s economy, contributing 23 per cent to the gross domestic product (GDP) and employing 37.4pc of the labour force. With 70pc of the country’s exports directly or indirectly linked to agriculture, disruptions in this sector can have profound economic impacts. Recent protests by farmers, sparked by governmental policies and market conditions, have thrown the sector into turmoil, exacerbating the ongoing challenges of inflation and low foreign reserves. Here’s a deep dive to make sense of what’s going on. Why are the farmers protesting? The unrest began after the Punjab government slashed its wheat procurement target by roughly half, saying that there was a carryover stock of 2.3 million tonnes already available. In this case, carryover means a stock of wheat available in storage facilities.