- Consultant hired to sell PASSCO’s assets, a new wheat policy, aimed at attracting private investment into the supply chain, is expected to be unveiled next year, minister tells NA
Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry confirmed in the National Assembly that the federal government will no longer regulate wheat prices, and the Pakistan Agricultural Storage and Services Corporation (Passco) is being wound up, with its assets set to be sold.
“When the government isn’t buying wheat, there’s no point in PASSCO. It’s being wound up,” Chaudhry stated while responding to members’ questions during the question hour, adding that a committee would be appointed to manage the agency’s assets.
The minister said that wheat is currently performing well in the open market, which is benefiting farmers and improving their income. He added that there are no restrictions on the movement or transport of wheat across the country.
He said the PASSCO is not involved in wheat procurement this year, and its continued operation is no longer considered viable. As a result, the government has decided to close down PASSCO. A consultant has been appointed to assess the value of PASSCO’s assets, which will be sold off in a transparent manner.
The government has hired TAGM & Co to handle the evaluation and develop a winding-up plan within three months. The firm will assess the total value of PASSCO’s assets, including offices and warehouses.
Dr. Fazal said the decision follows the Prime Minister’s directive to the Ministry of National Food Security and Research (MNFS&R) to finalize a proposal for PASSCO’s closure. The directive also includes finding an alternative mechanism to maintain strategic wheat reserves, potentially through private sector involvement in consultation with the Ministry of Finance.
He assured that the disposal of PASSCO’s assets will be carried out according to existing rules and policies, ensuring transparency throughout the process.
The announcement was met with strong criticism from lawmakers, including members of the Pakistan People’s Party (PPP) and the opposition.
PPP leader Aijaz Hussain Jakhrani criticised the decision, warning that removing Passco would expose farmers to unfair practices and insufficient compensation in the open market. “This free-for-all policy is a recipe for disaster,” Jakhrani said, recalling the challenges faced when the government had to import wheat during a previous caretaker regime, which exposed the country’s food supply to foreign market fluctuations.
PPP’s Hina Rabbani Khar expressed frustration at the government’s lack of coherent policy, accusing it of prioritising European farmers while neglecting local growers. “It’s clear—this government has no coherent policy for our farmers,” she said.
In defense, Dr. Chaudhary pointed to the rising costs of wheat production, revealing that the cost per acre had increased to Rs114,809 in the 2023-24 season, while the government’s support price was already below farmers’ needs.
He argued that the market-driven approach would ultimately benefit farmers by providing better rates. A new wheat policy, aimed at attracting private investment into the supply chain, is expected to be unveiled next year, though its impact on small farmers remains uncertain.
Concerns over the closure of Passco were further raised by PTI’s Aslam Gumman, who warned that without proper safeguards, the move could pave the way for wheat cartels to dominate the market.
“Shutting down Passco without airtight checks will disrupt supply—and manipulators will jump in,” Gumman warned.
Wheat farmers, already suffering low crop rates, face uncertainty due to the government’s decision to shut PASSCO and the removal of wheat price controls. The move has sparked alarm among farmers, particularly regarding the potential for market exploitation by middlemen and global grain cartels.
