ISLAMABAD: Pakistan’s government has approved a Rs4.188 billion severance package for employees of the Pakistan Agricultural Storage and Services Corporation (PASSCO) as part of a plan to close the state owned organization and complete its restructuring process.
The Economic Coordination Committee (ECC) of the Cabinet approved the package, but officials said its implementation will depend on the disposal of Passco’s remaining wheat stocks and verification by an independent third party, the process is expected to be completed by December 2026.
During the ECC meeting, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan highlighted the need for transparent monitoring of the closure process. He said an independent review would help ensure that all steps are completed properly.
The committee was also informed that Passco’s wheat stocks should be sold or cleared as soon as possible to allow the employee compensation package to move forward. The Ministry of National Food Security and Research assured officials that the winding up process would be completed within the given timeline.
The ministry told the ECC that the decision to close Passco followed a directive from the Prime Minister’s Office issued on Aug. 26, 2025. Under the directive, the finance minister was assigned to oversee the closure plan in consultation with relevant authorities.
The Establishment Division advised that Passco’s board of directors had the legal authority to approve employee compensation because the organization operates as a company limited by shares. Following this guidance, Passco’s board approved the revised package during its 156th meeting on Sept. 23, 2025.
The ECC had earlier approved the closure of Passco and the creation of a new organization called the Wheat Stock Management Company (WSMC) Public Limited to manage wheat reserves. The federal Cabinet later approved the decision on Dec. 23, 2025.
The total cost of the package is estimated at Rs4.188 billion, around Rs3.967 billion will be used for employee compensation and other benefits, while Rs221 million has been allocated for maintenance grants for 38 widows and 236 retired employees of Passco.
