The federal cabinet has approved the closure of the Pakistan Agricultural Storage and Services Corporation (PASSCO) by December 2026, formally ending the state owned wheat procurement agency as part of reforms aimed at reducing the government’s role in commodity markets and cutting fiscal costs.
According to official sources, the cabinet also approved a Rs. 4.18 billion compensation package for PASSCO employees. The corporation has around 1,100 regular employees, while wheat stocks damaged by floods will also be auctioned as part of the winding up process.
The closure marks one of the biggest structural changes in Pakistan’s wheat sector in decades. PASSCO has historically been responsible for procuring wheat from farmers, maintaining strategic reserves, and stabilizing prices during shortages.
The government’s decision follows a series of reforms in the wheat sector after the 2024 wheat import controversy, which triggered investigations into wheat procurement and stock management. The government has since moved toward reducing direct intervention in the wheat market and allowing greater private sector participation.
The move also aligns with Pakistan’s broader structural reform agenda under its International Monetary Fund (IMF) program, which calls for reducing the financial burden of state owned enterprises, improving fiscal discipline, and limiting government involvement in commercial activities. Under these reforms, the government has been shifting away from large scale wheat procurement and storage operations while encouraging market based pricing mechanisms.
Officials said the employee separation package will facilitate the corporation’s closure before the end of the year, while remaining assets and wheat stocks will be disposed of in accordance with the approved winding up plan.
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