Pakistan: Govt confirms decision to shut down PASSCO despite profits in eight of last 10 years
Pakistan will proceed with closing PASSCO despite the state-owned corporation recording profits in eight of the past 10 financial years. The government says the move supports wheat-sector reforms and reduced procurement costs, with strategic reserves to be managed through an alternative mechanism and greater private-sector participation.
The federal government has decided to proceed with the closure of the Pakistan Agricultural Storage and Services Corporation (PASSCO), despite the state-owned entity reporting profits in eight of the past 10 financial years, Minister for National Food Security and Research Rana Tanveer Hussain informed the National Assembly on Friday.
Responding to a written question from MNA Shahida Rehmani, food minister said the Economic Coordination Committee (ECC) approved the winding-up of PASSCO on December 9, 2025, followed by federal cabinet approval on December 23, 2025.
The minister said the decision formed part of agricultural reforms aimed at reducing government expenditure on wheat procurement and storage, increasing competition and encouraging private investment in the sector.
The shift towards a market-based wheat system began under the Interim National Wheat Policy 2025-26 and is being continued through the National Wheat Policy 2026-30.
According to financial statements presented to the National Assembly, PASSCO recorded profits in eight financial years between 2016-17 and 2025-26, with losses reported only in 2023-24 and 2024-25.
The corporation earned a profit after tax of Rs343.19 million in 2016-17, Rs408.71 million in 2017-18 and Rs1.59 billion in 2018-19. Its profit increased to Rs6.02 billion in 2019-20 before declining to Rs4.05 billion in 2020-21.
Earnings subsequently fell to Rs955 million in 2021-22 and Rs418.66 million in 2022-23, before the corporation reported a loss of Rs862.48 million in 2023-24.
The loss increased to Rs20.48 billion in 2024-25, although PASSCO returned to a profit of Rs6.02 billion in 2025-26, according to the submitted figures.
The government also disclosed that the corporation paid dividends of Rs985.52 million in 2020-21 and Rs238.75 million in 2021-22.
Hussain said PASSCO’s financial performance was affected by government-mandated wheat procurement, storage, financing and carrying costs, making it inappropriate to assess the organisation solely on commercial profitability.
He acknowledged PASSCO’s role in maintaining strategic wheat reserves and supplying wheat to deficit areas, the armed forces and during emergencies.
Addressing concerns about food security following its closure, the minister said the government was preparing an alternative institutional mechanism to manage strategic wheat reserves.
However, he did not provide details about the proposed institution, its funding arrangements or the implementation schedule.
The minister said existing PASSCO stocks were being used to meet provincial wheat requirements, while imports would be arranged where necessary.
The government’s proposed measures include maintaining federal and provincial wheat reserves, importing wheat through the Trading Corporation of Pakistan (TCP) to address confirmed shortages and allowing greater private-sector participation in procurement, storage, transportation and trade.
He added that the government would facilitate the movement of wheat and wheat products between provinces and monitor production, stocks, prices and market demand to determine when intervention was required.
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Source : Profit by Pakistan Today
