Federal Government to Settle Passco Liabilities Through New Wheat Stock Management Company

December 24, 2025 —

The federal government is finalizing a plan to settle the liabilities of the Pakistan Agricultural Storage and Services Corporation (Passco) through a newly established special purpose vehicle (SPV) named the Wheat Stock Management Company (WSMC). The decision follows the ongoing process of winding up Passco after a redefined role of the federal government in wheat procurement.

Under the SPV, long-term financing will be raised from banks with a sovereign guarantee from the government to settle Passco’s outstanding liabilities of Rs527.65 billion payable to creditor banks. After adjustments from the sale of wheat stocks, realization of dues from various agencies, and disposal of assets, a residual liability of Rs121 billion will remain to be serviced by the SPV.

The Economic Coordination Committee (ECC) recently approved the proposal, including the incorporation of WSMC as a public limited company under the Companies Act, 2017, with an initial paid-up capital of Rs1 million and an authorized capital of Rs5 billion. The SPV will be exempt from provisions of the State-Owned Enterprises (Governance and Operations) Act, 2023, and will be dissolved once its mandate is completed.

The Ministry of National Food Security and Research will draft incorporation instruments and manage the SPV’s operations, while the federal government will service the SPV’s debt obligations through annual budgetary allocations over five to seven years. Provinces failing to settle their liabilities may face deductions at source to facilitate the process.

The establishment of the SPV is part of the broader initiative to create an alternative administrative mechanism for managing strategic wheat reserves and ensure that all outstanding liabilities of Passco are cleared efficiently.