PASSCO to Close Despite Profits in 8 of 10 Years

Government to Close PASSCO Despite Profits in 8 of Past 10 Years

The federal government has decided to proceed with closing the Pakistan Agricultural Storage and Services Corporation (PASSCO), despite the state-owned organisation recording 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, the minister said the Economic Coordination Committee (ECC) approved PASSCO's winding-up on December 9, 2025, followed by approval from the federal cabinet on December 23, 2025.

He explained that the decision was part of agricultural reforms designed to reduce government spending on wheat procurement and storage, promote competition and encourage private-sector investment.

The transition towards a market-based wheat system began under the Interim National Wheat Policy 2025-26 and is continuing under the National Wheat Policy 2026-30.

PASSCO's financial performance

Financial statements submitted to the National Assembly show that PASSCO reported profits in eight financial years between 2016-17 and 2025-26, recording losses only in 2023-24 and 2024-25.

The corporation posted after-tax profits of Rs343.19 million in 2016-17, Rs408.71 million in 2017-18 and Rs1.59 billion in 2018-19. Its earnings climbed to Rs6.02 billion in 2019-20 before declining to Rs4.05 billion in 2020-21.

Profits fell further to Rs955 million in 2021-22 and Rs418.66 million in 2022-23. PASSCO then recorded a loss of Rs862.48 million in 2023-24, followed by a substantially larger loss of Rs20.48 billion in 2024-25.

The corporation returned to profitability in 2025-26, posting a profit of Rs6.02 billion, according to the figures presented to parliament.

The government also disclosed that PASSCO paid dividends of Rs985.52 million in 2020-21 and Rs238.75 million in 2021-22.

Hussain said the organisation's financial results were influenced by government-directed wheat procurement, storage, financing and carrying costs. He argued that its performance should not be assessed solely on the basis of commercial profitability.

He also recognised PASSCO's contribution to maintaining strategic wheat reserves and supplying wheat to deficit areas, the armed forces and emergency operations.

Alternative arrangements for food security

Responding to concerns about food security following PASSCO's closure, the minister said the government was developing an alternative institutional mechanism to manage strategic wheat reserves.

However, he did not disclose details regarding the proposed institution, its funding arrangements or the timeline for implementation.

Hussain said existing PASSCO stocks were being used to fulfil provincial wheat requirements, with imports to be arranged whenever necessary.

The government's proposed measures include maintaining wheat reserves at both federal and provincial levels, importing wheat through the Trading Corporation of Pakistan (TCP) to address confirmed shortages, and expanding 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. Authorities would also monitor production, stocks, prices and market demand to determine when intervention might be required.