ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the supply of 175,000 tonnes of 100 per cent fresh indigenous wheat to the Pakistan Army for the 2026–27 crop year, replacing the previous practice of supplying a mix of imported and locally produced wheat.
According to an official statement, the Ministry of Defence requested the allocation, arguing that wheat flour is the primary staple food for military personnel and plays an important role in sustaining troops deployed in challenging operational environments, including glacial and desert regions.
For the past four years, the Pakistan Agricultural Storage and Services Corporation (Passco) had supplied 175,000 tonnes of wheat to the armed forces under a 50:50 ratio of imported and local wheat. However, complaints regarding the taste, cooking quality and appearance of flour produced from imported wheat prompted the military to seek an entirely indigenous supply.
The ECC was informed that the Pakistan Army had previously procured local wheat through private suppliers to maintain food quality. The shift to 100 per cent local wheat is also expected to save approximately Rs2.8 billion that would otherwise have been spent on imported wheat.
What other decisions did the ECC take?
The ECC also approved amendments to the Import Policy Order 2022 by incorporating a definition of “forced labour” in line with the International Labour Organisation’s (ILO) Forced Labour Convention, 1930 (No. 29).
The amendment defines forced or compulsory labour as work or services extracted from a person under the threat of any penalty without voluntary consent. It excludes compulsory military service and other civic obligations recognised under the law.
According to the government, the amendment is aimed at strengthening Pakistan’s legal framework governing imports, ensuring compliance with international labour standards and improving the country’s trade governance.
What was decided regarding Passco?
The committee approved the auction of 8,197.989 tonnes of flood-damaged wheat held by Passco through an open and competitive bidding process, subject to third-party validation, to minimise financial losses and support the corporation’s ongoing restructuring.
The ECC also approved a Rs4.188 billion severance package for Passco employees, modelled on the compensation package introduced for the Utility Stores Corporation, to facilitate the payment of terminal benefits as part of the corporation’s winding-up process.
The meeting also reviewed a summary submitted by the Ministry of Federal Education and Professional Training regarding the financial sustainability and governance plan of Quaid-i-Azam University, Islamabad.