Govt to Halt Wheat Procurement in 2024, Plans to Wind Up PASSCO: Dr. Fazal Chaudhry
Islamabad — Federal Minister for Parliamentary Affairs Dr. Fazal Chaudhry informed the National Assembly on Friday that the government will not procure wheat during the current year, citing favorable market conditions and a shift in policy direction.
Responding during the question hour, Dr. Chaudhry stated that although the government will abstain from direct procurement, farmers capable of storing their wheat will be duly compensated. “Wheat is performing well in the open market, benefiting farmers and enhancing their income,” he said, adding that there are no restrictions on the movement or transport of wheat across the country.
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The minister also announced that the Pakistan Agricultural Storage and Services Corporation (PASSCO) will not participate in this year’s procurement process and that the government has decided to shut it down, deeming its continued operations no longer viable.
To ensure a transparent closure, a consultancy firm, TAGM & Co, has been hired to evaluate PASSCO’s assets and develop a detailed winding-up plan within three months. The assessment will cover the corporation’s offices, warehouses, and other holdings.
Dr. Chaudhry explained that the move follows Prime Minister Shehbaz Sharif’s directive to the Ministry of National Food Security and Research (MNFS&R) to prepare a closure proposal for PASSCO. The directive also involves exploring alternative mechanisms — possibly involving the private sector — to maintain strategic wheat reserves, in coordination with the Ministry of Finance.
He assured lawmakers that the disposal of PASSCO’s assets would be conducted in full compliance with existing rules and regulations, ensuring transparency at every stage.
