The Economic Coordination Committee (ECC) has approved a Rs4.188 billion compensation package for employees of the Pakistan Agricultural Storage and Services Corporation (PASSCO) as part of the government’s plan to wind up the organization by December 2026.
The compensation package is linked to the closure of PASSCO and the disposal of its wheat stocks. The ECC directed that the entire winding-up process be independently reviewed by a third-party validator to ensure transparency, accountability, and compliance with the approved plan.
The committee also instructed officials to expedite the disposal of PASSCO’s wheat stocks, stating that the timely sale of the inventory is essential for implementing the employee compensation package within the set deadline.
The Ministry of National Food Security and Research assured the ECC that all required steps, including the winding-up process and employee compensation, would be completed by December 2026.
The government initiated the closure of PASSCO in 2025 following directives from the Prime Minister’s Office, which tasked the finance minister with supervising the process in consultation with the relevant ministry.
A severance package was subsequently developed based on the Voluntary Separation Scheme (VSS) previously approved for employees of the Utility Stores Corporation. PASSCO’s Board of Directors later approved the revised compensation package, covering regular, contractual, and daily-wage employees.
The package includes severance compensation, terminal benefits, leave encashment, and a farewell grant. It also provides maintenance support through PASSCO’s Benevolent Fund for 38 widows and 236 retired employees.
Out of the total Rs4.188 billion package, approximately Rs3.967 billion has been allocated for severance compensation and terminal benefits, while Rs221 million has been earmarked for maintenance grants to widows and retired employees.
The ECC had earlier approved the closure of PASSCO and the establishment of the Wheat Stock Management Company (WSMC) Public Limited to oversee wheat stock management after the corporation’s closure.
