Pays money based on selling wheat supplies
By Mahnoor | 26-07-2026
The government has approved a Rs4.188 billion severance package for workers of the Pakistan Agricultural Storage and Services Corporation (Passco). The package will be given only after the wheat stocks are sold and an outside group checks the process. This is part of plans to close down the state-owned company.
The Economic Coordination Committee (ECC) of the Cabinet approved the package and said the whole process must be checked by an independent party and finished by December 2026.
At an ECC meeting, PM’s special assistant Haroon Akhtar Khan said it’s important to have an outside check on the closure process.
He also said Passco’s wheat supplies should be sold quickly to help workers get their severance pay on time. The Food Ministry told the committee they will finish the process by December 2026.
The ministry told the ECC that the PM’s Office, by a rule sent on August 26, 2025, asked the finance minister to lead the closing down of Passco, working with the ministry.
After this rule, a meeting led by the finance minister on September 11, 2025 decided to make a leaving package for Passco workers, okayed by the company’s board, following the package given to workers of the Utility Stores Corporation (USC).
The ministry told the ECC that the Establishment Division had said Passco, as a company with shares, could decide on a pay package for its workers through its board, following the rules. It also suggested that the package match the Voluntary Separation Scheme (VSS) given to USC workers.
So, Passco’s board, at its 156th meeting on September 23, 2025, approved the updated and matched severance package for its employees.
The ministry also reminded that on December 9, 2025, the ECC approved a plan to close Passco and set up a special company called the Wheat Stock Management Company (WSMC) as a public limited company.
This decision was later confirmed by the federal cabinet on December 23, 2025.
The ministry says the suggested plan includes regular, contract, and daily-paid workers. It covers both pay they get when they lose their job and final payouts.
The final payouts include unused vacation pay, calculated using the USC method, a goodbye gift, limits on housing rent help, and money for widows and retired workers from Passco’s charity fund.
The total cost of the package is about Rs4.188 billion, including Rs3.967 billion for severance pay and final benefits for Passco workers, and Rs221 million in support money for 38 widows and 236 retired workers.
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