ECC Agrees to Sell Old PASSCO Wheat Stock to Cover Liabilities, The Economic Coordination Committee (ECC) of the federal cabinet has approved plans to sell old wheat stocks held by the Pakistan Agricultural Storage and Services Corporation (PASSCO) through competitive bidding as part of efforts to clear outstanding liabilities owed to banks and former employees of the defunct corporation.
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The decision comes amid rising costs associated with storing ageing imported wheat — stock that has been held since 2022 — and mounting interest and handling expenses that have strained government finances.
Details of the Sale and Pricing
- The ECC approved the disposal of 500,000 metric tons (±15% as per PPRA rules) of PASSCO wheat through open competitive bidding.
- Reserve prices were set at Rs4,450 per 40 kg for local wheat and Rs4,070 per 40 kg for imported wheat, with authority to seek higher prices where possible.
- The auction is expected to be awarded by February 15, with wheat lifting to be completed by March 15, subject to final confirmation and contracts.
Why the Sale Was Approved
Officials from the Ministry of National Food Security & Research informed the ECC that:
- Wheat prices in the local market have risen sharply, prompting adjustments to reserve price recommendations.
- Carrying costs — including bank mark-ups and storage fees — have reached billions of rupees, making long-term retention of the old stock unsustainable.
- The ageing imported stock has been losing market value and could deteriorate further if not sold promptly.
Proceeds from the sale will be earmarked to settle dues owed to commercial banks and severance packages for former PASSCO employees, helping to reduce the financial burden on the government.
PASSCO’s Remaining Wheat Stocks
PASSCO reported that as of April 1, 2025, it held 2.448 million metric tons of wheat. Of this, 300,000 tons had been allocated to Azad Jammu & Kashmir and 160,000 tons to Gilgit-Baltistan, leaving nearly 2 million tons still available for possible disposal.
The ECC also instructed the Food Security Ministry to update the committee on progress by the end of February, indicating continued oversight of the wheat disposal process.
