The Economic Coordination Committee (ECC) has approved the disposal of 500,000 metric tons of surplus Passco wheat through competitive bidding, a move aimed at reducing storage costs and stabilizing flour prices across Pakistan. The committee also sanctioned the supply of 300,000 metric tons of wheat to Punjab’s Food and Consumer Protection Department to ensure steady availability for local flour mills.
The decision was made during an ECC meeting chaired by Finance Minister Muhammad Aurangzeb at the Finance Division. Senior federal ministers and officials from regulatory bodies were present. Officials stated that the wheat disposal plan will ease financial pressures on the government, support food supply chains, and curb price volatility in the retail market.
The ECC also approved technical supplementary grants, including Rs29.66 billion for national immunisation vaccines, Rs23.42 billion for sharing imported urea subsidies between federal and provincial governments, and Rs1.9 billion for infrastructure projects in Khyber Pakhtunkhwa. Additional approvals included funding for Cadet College Hasan Abdal and the distribution of confiscated solar panels to Gilgit-Baltistan to enhance power generation.
Pakistan Agricultural Storage and Services Corporation (Passco) holds large wheat reserves, which, if left in storage, can increase costs and strain public finances. Surplus wheat has previously led to price fluctuations in essential commodities like flour. By releasing stocks through competitive bidding and allocating wheat to provinces, the government seeks to stabilize the market and ensure consistent food supply.
“Disposal of Passco wheat will help manage storage costs and ensure smooth supply to mills, ultimately stabilizing flour prices for consumers,” a senior official said during the ECC briefing.
This move comes amid rising concerns over retail flour prices, which have reportedly reached up to Rs140 per kilogram in major cities like Karachi, highlighting the need for timely interventions.