The federal government is finalising a strategy to address the outstanding liabilities of over Rs527 billion payable by provinces to the Pakistan Agricultural Storage and Services Corporation (Passco), which is in the process of being wound up. This move includes a plan to deduct outstanding dues directly from provincial sources if payments are not cleared by the end of December 2025, The Express Tribune reported.
In a recent meeting of the Economic Coordination Committee (ECC), officials presented the background of their plan to establish a Special Purpose Vehicle (SPV) called the Wheat Stock Management Company (WSMC). This company will be responsible for managing the winding-up process and addressing Passco’s liabilities, including its Rs527.65 billion debt to creditor banks.
The current framework suggests that after the sale of wheat stocks and the settlement of receivables from various agencies, a remaining liability of Rs121 billion will be due for closure. The federal government plans to fund the SPV through long-term financing raised from banks, backed by a sovereign guarantee.
The SPV’s role will include the management and liquidation of assets, and the government will service its debt obligations over the next five to seven years.
The ECC has also called on the Ministry of Food Security to continue pursuing this initiative and to complete all necessary legal steps, including the drafting of incorporation documents, to establish the WSMC.
Additionally, a new committee will be established to oversee the process of finalising the dissolution of Passco, as per the directions from the Prime Minister’s Office, which had earlier mandated the winding-up of the corporation.
The proposed SPV will operate with an initial paid-up capital of Rs1 million and an authorized capital of Rs5 billion, with its goal to secure funding for the settlement of Passco’s remaining liabilities.
With a focus on transparency and efficiency, the government aims to resolve the outstanding financial obligations of Passco and ensure the continuation of food security measures in Pakistan. The establishment of the SPV is expected to be a crucial step in managing these liabilities and providing an effective solution for Passco’s winding-up.
