PASSCO fails to sell imported wheat worth billions

According to the audit report for 2024-25, large quantities of imported wheat became unusable after being affected by fungus, mold, and wheat

ISLAMABAD: The Auditor General of Pakistan has highlighted serious lapses in the Pakistan Agricultural Storage and Services Corporation (PASSCO), stating that the organisation failed to sell imported wheat valued at over Rs74 billion.

According to the audit report for 2024-25, large quantities of imported wheat became unusable after being affected by fungus, mold, and wheat dust, making it unfit for sale. The report noted that PASSCO’s poor planning and mismanagement caused the loss, as the imported wheat should have been purchased only according to actual requirements.

The audit findings show that PASSCO procured 1.258 million metric tons of imported wheat in 2022-23 and an additional 3.75 million metric tons through the Trading Corporation of Pakistan in 2023-24. In total, 1.633 million tons of wheat were purchased during these two years. However, only 956,000 metric tons were successfully sold.

This left nearly 677,000 tons of imported wheat unsold, valued at Rs74.47 billion. The Auditor General’s office reported the issue to PASSCO in January 2025 but said no reply was received.

The report recommended a full inquiry into the import and non-sale of wheat and stressed that those responsible should be held accountable.

Moreover, Faced with soaring wheat and flour prices, the Punjab government has decided to intervene by releasing wheat from its reserves and suggesting a controlled price of Rs 2,900 per 40 kilograms for government-distributed wheat.

According to an official from the Commodities and Price Control Department, a summary of this proposal has been forwarded to Chief Minister Maryam Nawaz for approval.

At present, the department has nearly 890,000 tonnes of wheat left over from last year’s procurement campaign. In the open market, however, prices have already climbed above Rs 3,100 per 40 kilograms, making basic food items harder to afford. Rising flour prices have also put pressure on bakeries and tandoor owners, who are considering raising the price of bread by Rs 2. Currently, a roti costs Rs 14.

Pakistan’s wheat production in the 2024–25 season has been disappointing. The country produced about 280 million tonnes from 220 million acres, falling short of both the 330 million-tonne target and last year’s 310 million-tonne yield. This gap has deepened concerns over food availability and affordability.

With a population of more than 250 million people and an annual per-person consumption of around 115 kilograms of wheat, the demand remains far greater than supply. Moreover, 1.2 million tonnes of the crop are reserved for seed, while part of the harvest is used in livestock and poultry feed as a cheaper substitute for maize.

Unlike previous years, the government has not set a minimum support price this season. Under commitments made to international donors, both federal and provincial authorities have avoided large-scale wheat procurement a sharp break from decades-old market practices.