ISLAMABAD:
The government approved a severance package of Rs 4,188 crore for employees of the Pakistan Agricultural Warehousing and Services Corporation (Passco), linking its implementation to the sale of wheat stocks and third-party validation as part of plans to liquidate the state-run entity.
The Economic Coordination Committee (CEC) of the Cabinet approved the compensation package with the stipulation that the entire process would be validated by an independent third party and completed by December 2026.
During discussions at the ECC meeting, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan highlighted the importance of third-party validation of the settlement process.
He also emphasized that Passco’s wheat stocks should be disposed of as soon as possible to facilitate the timely implementation of the compensation package. The Ministry of National Food Security and Research assured the committee that the process would be complete by December 2026.
The ministry informed the ECC that the Prime Minister’s Office, through a directive issued on August 26, 2025, had assigned the finance minister to lead the liquidation process of Passco in consultation with the ministry.
Following the directive, a meeting chaired by the Finance Minister on September 11, 2025 decided that a severance package for Passco employees should be formulated with the approval of the corporation’s board of directors, in line with the package approved for Utility Stores Corporation (USC) employees.
The ministry informed the ECC that the Establishment Division had informed that Passco, being a company limited by shares, was competent through its board of directors to offer a compensation package to its employees in accordance with the applicable rules and regulations. It also recommended that the package be aligned with the Voluntary Separation Plan (VSS) approved for USC employees.
Accordingly, the Board of Directors of PASSCO, in its 156th meeting held on September 23, 2025, approved the aligned and modified compensation package for its employees.
The ministry further reminded that the ECC, in its meeting on December 9, 2025, had approved the proposal to wind up Passco and establish a special purpose vehicle (SPV) named Wheat Stock Management Company (WSMC) Public Limited.
The decision was subsequently ratified by the federal cabinet on December 23, 2025.
According to the ministry, the proposed package covers regular, contractual and daily wage employees and includes both severance pay and severance benefits.
Terminal benefits include leave encashment aligned with the USC methodology, a farewell grant, a ceiling on house rent, and maintenance grants for widows and retired employees from the Passco Benevolent Fund.
The total financial implication of the package has been estimated at around Rs 4,188 crore, including Rs 3,967 crore for severance pay and terminal benefits for Passco employees, and Rs 221 crore in maintenance grants for 38 widows and 236 retired employees.
