The federal government has moved ahead with the winding up of Pakistan Agricultural Storage and Services Corporation Limited, which faces a residual liability of approximately Rs. 121 billion after adjustment of its wheat stocks, receivables and assets.
To settle this outstanding liability in an orderly and fiscally responsible manner, the government has decided to establish a Special Purpose Vehicle titled Wheat Stocks Management Company Public Limited.
The federal government has moved ahead with the winding up of Pakistan Agricultural Storage and Services Corporation Limited, which faces a residual liability of approximately Rs. 121 billion after adjustment of its wheat stocks, receivables and assets.
To settle this outstanding liability in an orderly and fiscally responsible manner, the government has decided to establish a Special Purpose Vehicle titled Wheat Stocks Management Company Public Limited.
A committee led by the Finance Minister held five meetings on 2, 5, 11 and 19 September and on 10 October 2025 to deliberate on the settlement of PASSCO’s liabilities and receivables, disposal of wheat stocks and modalities for the corporation’s closure.
Liabilities and the Solution
PASSCO’s total liabilities stand at Rs. 527.664 billion, out of which Rs. 121 billion is projected to remain after all adjustments.
To address this financial gap, Wheat Stocks Management Company Public Limited will be incorporated under Section 32 of the Companies Act 2017 with a mandate to raise long-term financing from banks backed by the Government of Pakistan’s sovereign guarantee.
The funds raised will be used exclusively to clear PASSCO’s remaining liabilities. The federal government will then service the debt through annual budgetary allocations over a five to seven-year amortization period.
The Economic Coordination Committee has been asked to approve the establishment of Wheat Stocks Management Company Public Limited with an initial paid-up capital of Rs. 1 million and an authorised capital of Rs. 350 billion. The Ministry of National Food Security and Research will prepare incorporation documents for vetting by the Law and Justice Division, while the new company is proposed to receive a reduced incorporation fee of Rs. 10,000 as a fully owned government entity.
Additional approvals sought include meeting incorporation expenses through the existing budget of the Ministry of National Food Security and Research, granting the SPV exemption from the State Owned Enterprises Act 2023 due to its non commercial nature and allowing its dissolution through self-liquidation once its mandate is completed.
