ISLAMABAD: Prime Minister Shehbaz Sharif on Friday assured support to the government in Pakistan’s most populous Punjab province in exporting wheat and related products following the approval of a $53.5 million (Rs15 billion) wheat support fund for farmers.

The Punjab government on Wednesday unveiled the package aimed at supporting wheat farmers facing falling prices during the harvest season and as farmers staged protests across various parts of the province. The move is part of the federal and Punjab governments’ broader effort to support the agricultural sector amid rising input costs and climate-related challenges. 

Under the scheme, 550,000 wheat farmers will be given direct financial support through the Kisan Card. Additionally, the Punjab government plans to seek federal approval for the export of surplus wheat and related products. The Bank of Punjab will also finance private-sector efforts to renovate or construct warehouses to improve wheat storage infrastructure.

“The federal government will provide full support to the Punjab government in the export of wheat and wheat products,” Prime Minister Shehbaz Sharif’s office said in a statement.

Traders and industry representatives are advocating for the government to authorize the export of surplus wheat to stabilize the market and improve prices for farmers. Last year, farmers in Pakistan held weeks-long protests over lower wheat prices due to the import of excess amounts of the commodity that flooded local markets.

Pakistan has not allowed wheat exports since 2019-2020 due to domestic supply concerns and the need to ensure food security. This decision was also influenced by the farmer protests against wheat imports flooding the market. While the government aims to stabilize the domestic wheat market by regulating imports and exports, recent decisions have been met with criticism, particularly from farmers who feel their interests are being overlooked. 

Agriculture is the backbone of Pakistan’s economy and constitutes its largest sector. According to the Pakistan Bureau of Statistics (PBS), agriculture contributes about 24 percent of the Gross Domestic Product and accounts for half of employed labor force in the country.

In Pakistan, wheat crops are planted in mid-December and the harvest usually begins in March, with the majority of the crop harvested between April and early June.

ISLAMABAD: Top companies from Hungary are in Pakistan this week for business-to-business engagements with their counterparts, the Hungarian foreign minister said, as Islamabad pushes to seek investments from allies old and new to bolster its struggling economy. 
The IMF’s $7 billion Extended Fund Facility (EFF), approved last year, has played a key role in stabilizing Pakistan’s economy in recent months and set it on the path of long-term recovery. However, Prime Minister Shehbaz Sharif’s government has vowed to reduce dependence on foreign loans in the coming years and seek more direct investment.
“I have brought with me top business leaders from Hungary. They are meeting with their Pakistani counterparts in B2B sessions today, and we hope to see new partnerships and trade avenues open,” Hungarian Foreign and Trade Minister Péter Szijjártó, who led a 17-member Hungarian business delegation to Islamabad, said at a business forum on Thursday.
Key public and private sector representatives from both countries attended the business forum to identify sector-specific synergies. Hungarian delegates represented industries such as IT, agri-tech, water management, health tech and advanced manufacturing, sectors in line with Pakistan’s development goals.
The Hungarian foreign minister also pointed to opportunities for collaboration in various sectors, including energy, agriculture, IT, food security, sports, and advanced manufacturing, and said a Hungarian private airline was exploring launching operations in Pakistan, indicating growing interest and confidence in the Pakistani market.

Szijjártó called Pakistan an “important economic partner” and emphasized Hungary’s continued advocacy for Pakistan’s preferential trade access to European markets under the GSP+ scheme. 
“Hungary stands with Pakistan on the GSP+ front. It not only benefits Pakistan’s exports but also strengthens EU-Pakistan relations through sustainable development and inclusive trade,” he said.
Commerce Minister Jam Kamal Khan, speaking at the business forum, welcomed Hungary’s continued support for Pakistan’s GSP+ status and praised Hungary’s technological strengths, particularly in seed technology, agriculture feed, and the services sector. 
“Our economic reforms are designed to improve ease of doing business, attract foreign investment, and create strong infrastructure to support sustainable growth,” said Kamal, highlighting several government initiatives such as the National Tariff Policy, Strategic Trade Policy Framework, Pakistan Single Window, and transit trade agreements with Central Asian countries aimed at enhancing regional and global trade integration.
On Thursday, Pakistan and Hungary signed an agreement to abolish visa requirements for diplomatic passport holders of both countries, along with two memorandums of understanding in the fields of culture and archaeology.