ISLAMABAD: PASSCO Severance plans moved forward after the government approved a Rs4.188 billion compensation package for employees of the Pakistan Agricultural Storage and Services Corporation (PASSCO) as part of the state-owned company’s winding-up process.

The Economic Coordination Committee (ECC) of the Cabinet approved the package on the condition that the entire process undergo independent third-party validation and be completed by December 2026.

Wheat Disposal Linked to Compensation

During the ECC meeting, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan stressed the need for transparent third-party verification of the winding-up process.

He also called for the early disposal of PASSCO’s wheat stocks to ensure the severance package is implemented without delays.

The Ministry of National Food Security and Research assured the committee that both the wheat disposal and employee compensation process would be completed by the end of 2026.

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Package Follows Government Directive

The ministry informed the ECC that the Prime Minister’s Office directed the Finance Minister on August 26, 2025, to oversee PASSCO’s winding-up process in consultation with the ministry.

A follow-up meeting chaired by the Finance Minister on September 11, 2025, decided that a severance package should be prepared for PASSCO employees, following the model approved earlier for the Utility Stores Corporation (USC).

The Establishment Division advised that PASSCO’s Board of Directors had the legal authority to approve the compensation package under the applicable rules.

PASSCO’s Board subsequently approved the revised severance package during its 156th meeting on September 23, 2025.

Government Continues PASSCO Restructuring

The ministry also recalled that the ECC approved the proposal to wind up PASSCO during its meeting on December 9, 2025, alongside the establishment of the Wheat Stock Management Company (WSMC) Public Limited as a Special Purpose Vehicle (SPV).

The federal cabinet later ratified the decision on December 23, 2025.

Package Covers Employees and Pensioners

According to the ministry, the compensation package covers regular, contractual and daily-wage employees.

It includes severance compensation, leave encashment, farewell grants, house rent ceiling benefits and maintenance grants for widows and retired employees through PASSCO’s Benevolent Fund.

The total financial cost of the package stands at approximately Rs4.188 billion, including Rs3.967 billion for employee severance compensation and terminal benefits, and Rs221 million in maintenance grants for 38 widows and 236 retired employees.