ISLAMABAD: The federal government has decided to close PASSCO and clear its dues of Rs 121 billion.
The decision was made following the approval of key structural changes by the ECC.
The ECC granted the green light for the establishment of a new company called Wet Stocks Management Company, which will be tasked with addressing all liabilities related to PASSCO.
Sources also stated that PASSCO’s overall dues amount to Rs 527.6 billion. A new company has been established that will secure long-term bank financing under government guarantees to pay off its outstanding financial duties.
Following the approval of the SPV, the process of gradual closure of PASSCO would be initiated, sources said, adding that the federal government would return the debt of SPV through the national budget within a period of the next five to seven years.
The Ministry of National Food Security has been directed to prepare the memorandum and articles of association for the new company. A Rs 10,000 setup fee for the company has also been approved.
Moreover, the ECC has approved an exemption to the Wet Stocks Management Company from the applicability of the SOEs Act 2023, which will pave the way for its operation smoothly.
The Joint Secretary of the Ministry of National Food Security has been appointed as the interim CEO of the newly established company.
Officials further said that once the company completes its mandate, it will go into self-liquidation and be dissolved, which would formally complete the winding-up of PASSCO.
