ISLAMABAD: Pakistan’s government intends to establish a Rs350 billion company called the Wheat Stock Management Company (WSMC) in place of Passco, which is heavily indebted. Authorities have stated that the formation of this company would improve the process of wheat procurement, storage, and distribution.
Government’s Strategic Overhaul
The Wheat Stock Management Corporation will be established as a special purpose public limited company having a capital of Rs350 billion. This corporation will manage national wheat stock, bear Passco’s financial liabilities, and borrow funds from banks over the longer term on the security of state guarantees.
Moreover, the corporation will pay off its existing debt. It will also avoid creating any debt in the future. The government has already listed the Wheat Stock Management Corporation at the Securities and Exchange Commission of Pakistan. Its chairman is the secretary of the Ministry of National Food Security and Research. The board also comprises three members who are secretaries of their respective ministries.
Experts Praise Long-Overdue Reforms
The interim entity will cease to exist after fulfilling its mission, as per the Articles of Association. Approval for the plan was sought by Prime Minister Shehbaz Sharif. This followed its approval by the Economic Coordination Committee in December 2025. The plan was later approved by the Federal Cabinet.
It is believed that the reform marks some of the greatest changes in Pakistan’s food industry in many years. It would also settle pending bills owed to provinces and address poor governance practices that have long plagued the taxpayers of Pakistan.
The government hopes that the new company will bring discipline, prevent future debts, and protect the national stock of wheat. Farmers and citizens will both reap the benefits of an improved system.
