Govt Approves Rs. 4.2 Billion Package to Shut Down PASSCO

The Economic Coordination Committee (ECC) has approved key measures to advance the winding up of the Pakistan Agricultural Storage and Services Corporation (PASSCO), including a Rs. 4.188 billion severance package for employees and the auction of thousands of tonnes of flood damaged wheat.

The decisions were taken during an ECC meeting chaired by Finance Minister Senator Muhammad Aurangzeb. As part of the restructuring process, the committee approved the auction of 8,197.989 metric tons of flood damaged wheat through an open and competitive bidding process, subject to third party validation, to minimize financial losses and ensure transparent disposal of the stock.

The ECC also approved a Rs. 4.188 billion compensation package to provide severance payments and terminal benefits to eligible PASSCO employees as the state owned grain procurement agency is wound up.

The federal government had earlier decided to abolish PASSCO as part of its broader public sector reform agenda aimed at reducing the fiscal burden of loss making state owned enterprises and transferring wheat procurement responsibilities to the provinces and the private sector.

Separately, the ECC reviewed the Financial Sustainability and Governance Plan of Quaid i Azam University and advised the university to engage independent financial experts to prepare a practical long term financial sustainability plan to ensure the continuity of its academic operations.

The committee also approved an amendment to the Import Policy Order 2022 by introducing a definition of forced labor in line with the ILO Forced Labour Convention, 1930. The government said the amendment will strengthen Pakistan’s import regulations, improve compliance with international labor standards, and support the country’s trade governance framework.