Pakistan has announced the creation of a Rs350 billion Wheat Stock Management Company (WSMC) to replace the existing Pakistan Agricultural Storage and Services Corporation (Passco). This strategic move, is intended to enhance wheat operations and address the sector’s growing debt and inefficiencies.
The WSMC, a public limited company, is designed as a special-purpose vehicle with an authorized capital of Rs350 billion. It will take over national wheat reserves and absorb the debt of the struggling Passco. The government has appointed the secretary of the Ministry of National Food Security and Research as the chairman of the new company to ensure speed and policy alignment.
Registered with the Securities and Exchange Commission of Pakistan, the WSMC is tasked with managing wheat stocks and raising long-term bank financing under state guarantees. It will also settle Passco’s liabilities. This restructuring is seen as critical to addressing inefficiencies in wheat procurement and storage, including costly surplus stockpiling and delayed provincial payments.
Approved by the Economic Coordination Committee in December 2025 and ratified by the federal cabinet, this reform is one of the most significant in Pakistan’s food sector in recent years. Prime Minister Shehbaz Sharif has endorsed the proposal, which is expected to streamline operations, limit future debt accumulation, and restore discipline to a system central to the country’s food security.
Published in SouthAsianDesk, April 6, 2026
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