ECC approves Rs4.188bn PASSCO compensation package
The Economic Coordination Committee (ECC) has approved a Rs4.188 billion compensation package for employees of the Pakistan Agricultural Storage and Services Corporation (PASSCO).
The decision is part of the government’s plan to wind up PASSCO. The process is also linked to the disposal of the corporation’s wheat stocks. The government has set December 2026 as the deadline for completing the process.
The ECC directed that the winding-up process must be independently reviewed. A third party will validate the process to ensure transparency and compliance with the approved plan.
The committee also stressed the need to dispose of PASSCO’s wheat stocks as soon as possible. Officials said the early disposal of the stocks would help implement the employee compensation package on time.
The Ministry of National Food Security and Research assured the ECC that the process would be completed by December.
The government began work on the closure of PASSCO in 2025. The Prime Minister’s Office had directed the finance minister to oversee the process in consultation with the relevant ministry.
A meeting chaired by the finance minister later decided that a severance package should be prepared for PASSCO employees. The package was designed along the lines of the voluntary separation scheme approved for employees of the Utility Stores Corporation.
PASSCO’s Board of Directors subsequently approved the revised compensation package. The scheme covers regular employees as well as contractual and daily-wage workers.
It includes severance compensation and several terminal benefits. These include leave encashment and a farewell grant. The package also provides maintenance support for widows and retired employees through PASSCO’s Benevolent Fund.
The ECC had previously approved the winding up of PASSCO. It also approved the creation of a Special Purpose Vehicle called the Wheat Stock Management Company (WSMC) Public Limited. The federal cabinet later ratified the decision.
The total cost of the employee package is estimated at Rs4.188 billion. Around Rs3.967 billion has been allocated for severance compensation and terminal benefits for PASSCO employees.
Another Rs221 million has been set aside for maintenance grants. The amount will benefit 38 widows and 236 retired employees.
