Wheat Price Policies in Pakistan: Should There be a Subsidy? * (AGRICULTURAL PRODUCTION AND PRICING Policies) (Report‪)‬

1. INTRODUCTION In the 1980s, Pakistan's wheat policies taxed its producers and subsidised its consumers. Moreover, the post-rationing, open-ended system of releases has increased the burden on the government budget. The Government now faces severe shortages of resources at a time when human capital and physical infrastructure must be developed and maintained. This paper reviews wheat price policies in Pakistan and, patterns of wheat consumption over time, and makes recommendations for policy changes.