500,000 Tons of Wheat to Be Sold Through Competitive Bidding
The Economic Coordination Committee (ECC) of the Cabinet has approved a major move to offload 500,000 metric tons of old wheat stocks held by the Pakistan Agricultural Storage and Services Corporation (PASSCO). The decision aims to reduce the financial burden of holding large inventories and to clear ageing stock from government warehouses.
According to details shared after the meeting, the wheat will be sold through competitive bidding on a First-In-First-Out (FIFO) basis. This means that the oldest wheat in storage will be sold first, helping to minimise quality risks and storage losses while also freeing up space for new crop arrivals.
The ECC was informed that an earlier attempt to sell this wheat at previously approved reserve prices did not succeed because the bids received from buyers were too low. As a result, the government has now revised the reserve prices to bring them closer to market realities.
Revised Reserve Prices for Local and Imported Wheat
In the fresh decision, the ECC agreed to new reserve prices for both local and imported wheat. For locally produced wheat, the reserve price has been set at Rs. 4,150 per 40 kg. For imported wheat, the revised reserve price is Rs. 3,800 per 40 kg.
Officials explained that these adjustments were made after reviewing the current stock position, carrying costs and broader market conditions. Holding large wheat stocks over time results in significant expenses related to storage, handling and financing. By revising the reserve prices, the government hopes to attract more realistic bids and complete the sale process without causing unnecessary delays.
The move is also expected to send a clearer price signal to the market, at a time when inflation, food security concerns and fiscal pressures are forcing policymakers to use public stocks more carefully.
Grant Approved for Defunct Pak-PWD Development Projects
Beyond wheat, the ECC also took up development-related financial matters. The Committee approved a Technical Supplementary Grant of Rs. 536 million for Public Sector Development Programme (PSDP) projects previously handled by the now defunct Pakistan Public Works Department (Pak-PWD).
The approved funds will be transferred to the Governments of Punjab and Khyber Pakhtunkhwa for specific ongoing projects. This transfer will take place under the relevant legal and constitutional provisions, ensuring that the work continues smoothly despite institutional restructuring.
By allocating these funds, the ECC has sought to avoid delays in important infrastructure and public service schemes that were originally overseen by Pak-PWD, including schemes related to buildings, housing and other federal-linked facilities in the provinces.
Fact-Finding on Cnergyico Settlement Sent Back for More Detail
The Petroleum Division also briefed the ECC on a fact-finding report concerning a Deed of Settlement with Cnergyico PK Limited. The report had been prepared in response to earlier ECC directions regarding delayed Petroleum Levy payments by the company.
However, after reviewing the summary, the ECC returned the report with observations and asked for a more comprehensive presentation at a future meeting. This indicates that the Committee wants further clarity on the background, terms and implications of the settlement before making any final decisions.
The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Investment Qaiser Ahmed Sheikh (virtually), Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan (virtually), and senior officials from relevant ministries and divisions.
