PASSCO shutdown was confirmed in the National Assembly after ECC and cabinet approvals in December 2025, despite a Rs6.02 billion profit in 2025-26.
The federal government will wind up PASSCO after Economic Coordination Committee approval on 9 December 2025 and cabinet approval on 23 December 2025.
Food Security Minister Rana Tanveer Hussain told the National Assembly the move is part of agricultural reforms to cut public wheat procurement and storage costs.
PASSCO posted a Rs6.02 billion profit in 2025-26 and was profitable in eight of the ten years from 2016-17 to 2025-26.
It recorded losses of Rs862.48 million in 2023-24 and Rs20.48 billion in 2024-25, which the minister linked to directed costs and reserve duties.
A replacement strategic-reserve system is planned but its structure, financing and timetable have not been disclosed; confirmed shortages may be met via Trading Corporation of Pakistan imports.