ISLAMABAD: Pakistan is moving to operationalise a Rs350 billion wheat company to replace the failing Pakistan Agricultural Storage and Services Corporation (PASSCO), and absorb more than Rs527 billion in debt. The move targets chronic inefficiencies in wheat storage, mounting fiscal pressure and recurring food security risks.
The Wheat Stock Management Company (WSMC) public limited is a special-purpose vehicle with authorised capital of Rs350 billion created to replace the debt-ridden PASSCO, take over national wheat reserves and absorb the debt.
The government plans to appoint the secretary of Ministry of National Food Security and Research as chairman of the new Wheat Stock Management Company (WSMC). The aim is speed, control and policy alignment.
WSMC is already registered with the Securities and Exchange Commission of Pakistan. It will take over wheat stocks. It will raise long-term bank financing under state guarantees. Besides, it will settle PASSCO’s liabilities. The company is designed as a temporary entity and will be dissolved once its mandate is completed. The board will comprise three senior officials, food secretary as chairman, alongside the federal finance secretary and additional secretary (administration) of the food ministry, in line with the company’s Articles of Association.
Officials say the restructuring is critical to fixing long-standing inefficiencies in wheat procurement and storage, including costly surplus stockpiling, delayed provincial payments and weak governance that have strained public finances.
The overhaul, approved by the Economic Coordination Committee in December 2025 and ratified by the federal cabinet, is among the most significant reforms in Pakistan’s food sector in years. Prime Minister Shehbaz Sharif has already cleared the proposal for circulation among cabinet members for final approval. Authorities expect WSMC to streamline operations, limit future debt accumulation and restore discipline to a system central to the country’s food security.
