Pakistan-Wheat production.

PAKISTAN-Pakistan’s central bank has asked all local banks to provide loans to private mills for the purchase of wheat from local farmers this year to avoid any supply disruption in the local market.

The banks must ensure that the loans are used only to buy wheat, the State Bank of Pakistan said in a statement Friday.

Pakistan will be able to meet its wheat production target of 25 million tons, despite a 50% shortfall in the availability of urea fertilizer, officials of the country’s committee on agriculture said.

The Ministry of Food and Agriculture had told the committee that the area cultivated in wheat has risen by 7% this season to over 22 million acres, officials said.

An increase in the government’s procurement price to PKR950 ($12) per 40 kilograms has encouraged farmers to sow more wheat, officials said.

Last year, Pakistan imported around 2.5 million tons of wheat to meet a local shortfall and stabilize prices.