ISLAMABAD (special crosspondent) – The government’s strategic plan to wind up the Pakistan Agricultural Storage and Services Corporation (PASSCO) advanced significantly on Saturday, following the Economic Coordination Committee (ECC) approval of a Rs4.2 billion compensation package for the corporation’s workforce. This development aligns with the federal government’s broader commitment to reforming state-owned enterprises, a process similar to the administrative adjustments seen in sectors like the government’s suspension of proposed rebrandings for telecommunications entities.

Compensation and Implementation Timeline

According to reports, the substantial financial package is slated for implementation following an independent audit and verification of the corporation’s winding-up proceedings, including the complete disposal of its existing wheat stocks. The government has set a definitive target to conclude the formal closure of the state-owned entity by the end of 2026, marking a transition point in national food security logistics.

The approved Rs4.2 billion allocation encompasses a comprehensive suite of benefits, including severance payments, terminal benefits, leave encashment, and various retirement-related dues. These provisions extend to permanent, contractual, and daily-wage employees. Furthermore, the package incorporates financial assistance mechanisms for widows and retired staff, sourced through the existing PASSCO Benevolent Fund.

Strategic Shift in Wheat Management

During the ECC session, officials emphasized that this restructuring initiative is being executed under strict directives from the Prime Minister’s Office. This move mirrors recent efforts across various administrative departments to optimize efficiency, as seen in the Emergency Response Committee’s review of seasonal readiness, highlighting a shift toward more streamlined federal operations.

Upon the final dissolution of PASSCO, the state plans to establish a new entity, the Wheat Stock Management Company (WSMC). This successor organization will be tasked with the oversight and management of Pakistan’s strategic wheat reserves. Policy makers argue that this transition is critical to reducing the fiscal burden of redundant state-owned enterprises and enhancing the overall efficacy of the country’s national wheat procurement and storage framework.