ISLAMABAD: The federal government’s decision to wind up the Pakistan Agricultural Storage and Services Corporation (PASSCO) has sparked concerns over the future management of Pakistan’s strategic wheat reserve system, at a time when food security continues to remain a key national priority.
PASSCO has for years served as one of the central institutions responsible for maintaining strategic wheat stocks, ensuring supply stability across deficit regions, and supporting government food security operations during periods of pressure or shortage.
Its role has been closely linked with Pakistan’s broader efforts to stabilize wheat availability and manage national grain reserves.
According to its performance report for the fiscal year 2024–25, PASSCO continued large-scale operations despite the ongoing restructuring process. The organization released more than 603,000 metric tons of wheat to various government and allied agencies during the year, while maintaining a substantial carryover stock of approximately 2.4 million metric tons.
These figures highlight that even during a transition phase, PASSCO remained actively involved in managing wheat flows and ensuring supply distribution to relevant stakeholders across the country.
PASSCO operates as a public limited company under the administrative control of the Ministry of National Food Security and Research. It is a self-sustained organization and does not receive direct budgetary allocations from the federal government.
Instead, its operations are primarily financed through bank credit facilities, which support procurement, storage, and distribution activities.
Over the years, the organization has developed a nationwide storage network that includes both covered and open storage facilities. Its total covered storage capacity stands at more than 572,000 metric tons, while additional stocks are managed through alternative arrangements depending on seasonal and operational requirements.
Alongside its storage mandate, PASSCO also plays a role in market support operations by releasing wheat to deficit provinces, government institutions, and armed forces, particularly during periods when demand rises or supply gaps emerge.
However, officials have confirmed that PASSCO is currently undergoing a winding-up process as directed by the federal government. The decision marks a significant institutional shift, especially considering the corporation’s long-standing role in Pakistan’s wheat procurement and reserve management system.
The move has prompted discussion within policy and agriculture circles regarding the future framework that will replace PASSCO’s functions, particularly in relation to strategic grain reserves and emergency food supply mechanisms.
While authorities maintain that existing food security arrangements will continue without disruption, the transition has raised broader questions about long-term planning, institutional capacity, and the sustainability of Pakistan’s wheat management system.
For now, PASSCO remains operational during the restructuring phase, continuing its core responsibilities as the government works on finalising the future structure of the country’s wheat reserve management system.
