ISLAMABAD:
The government has approved a Rs 4.188 billion severance package for employees of the Pakistan Agricultural Storage and Services Corporation (Passco), linking its implementation to disposal of wheat stocks and third-party validation as part of plans to wind down the state-owned entity.
The Economic Coordination Committee (ECC) of the Cabinet approved the severance package with the condition that the entire process would be validated by an independent third party and completed by December 2026.
During the discussions at the ECC meeting, Special Assistant to the Prime Minister on Industry and Production Haroon Akhtar Khan emphasized the importance of third-party validation of the settlement process.
He also stressed that Passco’s wheat stocks should be disposed of as early as possible to facilitate the timely implementation of the severance package. The Ministry of National Food Safety and Research assured the committee that the process would be completed by December 2026.
The Ministry informed the ECC that the Prime Minister’s Office, through a directive issued on 26 August 2025, had tasked the Finance Minister to lead the winding-up process of Passco in consultation with the Ministry.
Following the directive, a meeting chaired by the Finance Minister on 11 September 2025 decided to formulate a severance package for Passco employees with the approval of the company’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 public limited company, 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 Scheme (VSS) approved for USC employees.
Therefore, at its 156th meeting on September 23, 2025, PASSCO’s board of directors approved the adjusted and amended severance package for its employees.
The Ministry further recalled that the ECC at its meeting on 9 December 2025 had approved the proposal to liquidate 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 23 December 2025.
According to the ministry, the proposed package includes permanent, contractual and daily wage employees and includes both severance pay and terminal benefits.
Terminal benefits include leave pay in accordance with the USC method, a severance allowance, rent cap and maintenance allowance for widows and retired employees from Passco’s Benevolent Fund.
The total financial implication of the package has been estimated at approximately Rs4.188 billion, including Rs3.967 billion for severance pay and terminal benefits for Passco employees, and Rs221 million in maintenance grants for 38 widows and 236 retired employees.
