ISLAMABAD:
The government has approved a severance package of Rs4.188 billion for employees of the Pakistan Agricultural Storage and Services Corporation (Passco), linking its implementation to the divestment of wheat stocks and third-party validation as part of the state-owned entity’s liquidation plans.
The Economic Coordination Committee (ECC) of the Cabinet approved the severance package stipulating that the entire process would be validated by an independent third party and completed by December 2026.
During discussions at the ECC meeting, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan highlighted the importance of third-party validation of the liquidation process.
He also stressed that Passco’s wheat stocks should be liquidated as soon as possible to facilitate the timely implementation of the severance package. The Ministry of National Food Security 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 August 26, 2025, had directed the Minister of Finance to lead the liquidation process of Passco in consultation with the ministry.
Following this directive, a meeting chaired by the Minister of Finance on September 11, 2025 decided that a severance package should be formulated for employees of Passco with the approval of the board of directors of the company, in line with the package approved for employees of Utility Stores Corporation (USC).
The Ministry informed the ECC that the Establishment Division had indicated that Passco, being a company limited by shares, was competent, through its Board of Directors, to provide total remuneration to its employees in accordance with applicable rules and regulations. It also recommended that the package be aligned with the Voluntary Separation Program (VSS) approved for USC employees.
Accordingly, the Board of Directors of PASSCO, at its 156th meeting held on September 23, 2025, approved the aligned and modified severance pay of its employees.
The ministry further recalled that the ECC, in its meeting held on December 9, 2025, approved the proposal for liquidation of Passco and establishment of a special purpose vehicle (SPV) named Wheat Stock Management Company (WSMC) Public Limited.
The decision was subsequently ratified by the federal cabinet on December 23, 2025.
According to the ministry, the proposed package covers regular, contract and daily wage employees and includes both severance and termination benefits.
Termination benefits include leave encashment aligned with the USC methodology, a farewell allowance, rent cap and maintenance allowances to widows and retired employees from Passco’s benevolent fund.
The total financial implication of the plan has been estimated at around Rs4.188 billion, including Rs3.967 billion for severance and severance pay for Passco employees, and Rs221 million in maintenance allowances for 38 widows and 236 retired employees.
