The Economic Coordination Committee (ECC) of Pakistan’s federal cabinet has approved the disposal of 500,000 metric tons of wheat held by the Pakistan Agricultural Storage and Services Corporation (PASSCO) through competitive bidding.
This decision comes as part of broader efforts to reduce surplus stocks, cut storage costs, and help stabilize wheat prices in the local market.
PASSCO has long held large quantities of wheat, including both imported and locally procured stocks dating back to 2022. Holding these stocks has become financially burdensome due to high storage costs and ongoing interest payments, which has prompted authorities to find a solution that minimizes waste and fiscal strain.
The ECC’s approval targets 500,000 tons for sale under open bidding, allowing market forces to determine the best price and helping reduce overall carrying costs.
Officials say selling the wheat will also help ease distortions in the domestic supply chain. By releasing stocked grain into the market, the government aims to support flour mills and other buyers, ensuring better availability and contributing to efforts to keep flour and wheat prices more stable for consumers.
In addition to competitive bidding, parts of the wheat stock may be allocated to provinces or departments that need it most, helping manage both supply and food security concerns.
The ECC has directed the responsible ministries to provide updates on the disposal process and its impact by the end of the month.
The move reflects ongoing attempts to handle the legacy of surplus wheat stocks in a way that supports the national economy and reduces the financial burden on government storage operations.