Pakistan’s Economic Coordination Committee (ECC) has approved a plan to sell 500,000 tons of wheat stored in government warehouses managed by the Pakistan Agricultural Storage and Services Corporation (PASSCO). The move aims to reduce surplus stocks, lower storage costs, and stabilize domestic wheat prices. Of this total, 300,000 tons will be allocated to the Food and Consumer Protection Department of Punjab province to ensure flour mills have sufficient supply and to maintain steady prices for consumers.
Over the past year, wheat stocks in PASSCO warehouses have grown due to prior import programs and domestic procurement. Prolonged storage has increased costs and raised concerns over quality deterioration, making large stockpiles economically inefficient. Selling the wheat through competitive bidding is expected to generate revenue, reduce inventory levels, and alleviate logistical challenges.
Critics note that selling wheat below its original procurement cost could result in fiscal losses of around Rs20.5–22 billion. Nonetheless, the government seeks to balance financial considerations with food security, ensuring adequate flour supply for the population.
PASSCO, established in 1973 to safeguard strategic reserves and national food security, is gradually shifting its role. The government is downsizing operations, selling surplus stocks, and restructuring warehouse management as part of broader efforts to improve efficiency and reduce fiscal burdens.
The wheat sale also aims to stabilize flour prices in Punjab, a key agricultural province. Ensuring sufficient supply to local mills is expected to prevent sharp price fluctuations and shortages, while reducing inflationary pressures on living costs. Experts emphasize that long-term solutions will require better coordination between federal and provincial authorities, modernized storage infrastructure, and strategic planning to prevent future stock surpluses.
