The Auditor General of Pakistan (AGP) has attributed the Rs300 billion wheat scam of 2023-24 to “malafide” intent, “completely unreliable” data, delayed federal-provincial actions, and deliberate manipulation designed to benefit the private sector at the expense of local farmers and the national treasury.
While the scandal had already drawn significant media and public attention, the AGP’s findings now offer official confirmation and introduce new evidence, including claims of “malafide” intent, fabricated data, and delayed government intervention.
The report substantiates that massive over-imports of wheat occurred despite existing surplus stocks. The AGP discovered that 3.59 million metric tonnes (MMT) of wheat were imported in 2023-24, significantly exceeding the approved quota of 2.40 MMT. This happened even though Pakistan had recorded its highest-ever local wheat production of 31.47 MMT and carried forward a stock balance of 4.64 MMT.
The report labels the justification for these imports as “completely unreliable,” suggesting a deliberate inflation of national demand estimates. The audit observes: “The requirement was presented (seems malafide).”
Crucial data used to rationalize imports were plagued with inconsistencies, particularly in the opening and closing stock figures over several years. The AGP highlighted discrepancies in wheat stock figures presented at official meetings, which served as the basis for major import decisions. “Overstated” or “understated stock” figures led to misguided decisions, such as excessive imports, or delays that subsequently created shortages. The report further exposed that Punjab and Sindh — Pakistan’s two primary wheat-producing provinces — released drastically lower amounts of wheat to flour mills in mid-2023. This action created a false sense of shortage, consequently driving up wheat and flour prices.
Punjab’s wheat release between June and October 2023 was a mere 5,657 tonnes, starkly contrasting with over two million tonnes in the same period of 2022. This triggered panic in the local market, leading to an increase in flour prices.
Perhaps the most damning revelation is the intentional delay in executing public sector wheat imports through the Trading Corporation of Pakistan (TCP). Despite the Economic Coordination Committee (ECC) and federal cabinet approving one MMT of wheat import via TCP, the Ministry of National Food Security and Research (MNFS&R) held onto the file for over a month. Ultimately, it instructed TCP to withhold procurement altogether — only after private imports had already saturated the market. The AGP report apprehends that the MNFS&R and Ministry of Commerce deliberately delayed this process to favor private importers.
The Ministry of Commerce had previously advised implementing caps and timelines on private imports and mandating importers to sell directly to flour mills, ensuring price benefits for consumers. However, MNFS&R disregarded this advice, permitting open-ended imports that ultimately destabilized the local market and severely undercut farmer returns.
The AGP report disclosed that public sector wheat procurement fell 25% below target in 2023-24 and 40% below target in 2024-25, with Punjab procuring zero wheat in 2024-25. Adding to this, the government failed to announce the Minimum Support Price (MSP) before the sowing season — a crucial policy measure designed to provide farmers with price certainty.
Instead, the MSP was finalized in March 2023, just before harvest, leaving farmers vulnerable to market speculation.
The government had partly justified the import quota by citing the need to build strategic reserves. However, the AGP debunked this claim, noting that the wheat was imported just before harvest and stored not by the state, but by private importers, due to the government’s limited storage capacity (only 0.5 MMT).
“The facts about strategic reserves were false and misleading […] The benefits meant for local farmers were granted to importers and hoarders.”
Another startling finding was the inclusion of Afghanistan’s wheat demand in Pakistan’s domestic consumption figures, entirely without documentation or justification. Meanwhile, US Department of Agriculture reports confirmed that over 500,000 tonnes of wheat were exported to Afghanistan — unaccounted for in official figures. This was used to inflate national demand and justify additional imports.
The report revealed that the AGP’s findings were formally shared with the Ministry of National Food Security and Research on January 20 and January 28, 2025, requesting a response, record verification, and departmental meetings. No reply was received.
The AGP report reveals far more than mere administrative inefficiencies. It strongly indicates deliberate decision-making that enriched private importers, undermined food security, and sabotaged local farmers, all while costing the nation hundreds of billions of rupees.
Regarding the role of the provincial governments — Punjab and Sindh — the audit reports primarily refer to periods when caretaker governments were in place in both provinces. The present governments are not in a position to respond to these issues; however, officials from both administrations, speaking on condition of anonymity, have assured that if required, necessary action will be taken.
