ECC approves auction of 500,000 tonnes Passco wheat to clear liabilities

The Economic Coordination Committee (ECC) has approved the disposal of 500,000 metric tons of wheat held by the Pakistan Agricultural Storage and Services Corporation (Passco) through open competitive bidding to clear bank liabilities and employee dues, The Express Tribune reported. 

The Ministry of National Food Security and Research informed the ECC that Passco has been holding imported wheat since 2022 and incurring billions of rupees in interest, storage and handling costs. The auction proceeds will be used to settle bank mark-up payments and finance employee severance packages as part of the corporation’s winding-up process.

It was highlighted that the expected date for the award of a contract would be February 15, with the lifting of wheat by March 15, once the decision was finalised.

The ministry estimated that disposing of 500,000 tons at prevailing prices could result in a financial loss ranging between Rs13 billion and Rs22.11 billion. However, it noted that the annual carrying cost of the same quantity exceeds Rs11 billion, making early disposal financially prudent.

As of April 1, 2025, Passco was holding 2.448 million metric tons of wheat. Out of this, 300,000 tons were allocated to Azad Jammu and Kashmir and 160,000 tons to Gilgit-Baltistan, leaving 1.988 million tons available for disposal.

The proposed auction quantity includes 294,994 tons of imported wheat from the 2022 lot and 250,006 tons of local wheat, to be sold on a First-In-First-Out basis. The Passco board had recommended open bidding in its 155th meeting held on August 11, 2025, citing weak demand from government agencies and mounting financial costs. The board reaffirmed the plan in its 160th meeting on December 5, 2025.

The ECC was informed that continued holding of the ageing 2022 imported stock would reduce its market value further compared to fresh arrivals. The committee directed the ministry to share progress on the disposal plan by the end of February and agreed to review the overall situation after assessing auction results and market conditions.