ISLAMABAD – The federal cabinet on Tuesday approved the closure of the Pakistan Agricultural Storage and Services Corporation Limited (PASSCO) by December 2026 as part of the government’s restructuring efforts aimed at reducing the financial burden of state-owned enterprises.
The official sources said that the cabinet also approved a financial compensation package worth Rs4.18 billion for PASSCO employees to facilitate the transition following the corporation’s dissolution.
The approved package will primarily benefit the organisation’s regular workforce, which consists of nearly 1,100 employees. The compensation plan is intended to provide financial support to staff members who will be affected by the closure.
Sources said the government has also decided to auction wheat stocks that were damaged during recent floods. The move is aimed at disposing of unusable grain reserves while recovering part of their remaining value.
PASSCO, a state-owned entity responsible for procuring, storing and maintaining strategic wheat reserves, has played a key role in Pakistan’s food security framework for decades. However, the corporation has faced growing criticism in recent years over financial inefficiencies, operational challenges and the high cost of maintaining its storage infrastructure.
The decision to wind up the organisation is part of broader reforms being pursued by the federal government to streamline public-sector institutions, reduce expenditures and improve the efficiency of state-owned enterprises.
Officials said the closure process will be completed by the end of December, with the employee compensation package and the disposal of wheat stocks forming key components of the transition plan.
The further details regarding the implementation of the restructuring process, including the settlement of assets and liabilities, are expected to be announced in the coming weeks.
The government has not yet disclosed how PASSCO’s responsibilities for wheat procurement and strategic grain storage will be managed after the organisation ceases operations.
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