• ECC approves 175,000 tonnes from 2026-27 crop
• Defines ‘forced labour’ in line with ILO 1930 convention
• Passco gets Rs4.188bn severance package

ISLAMABAD: The government on Thursday decided to supply 175,000 tonnes of 100 per cent fresh indigenous wheat to Pakistan Army and approved defining ‘forced labour’ in compliance with requirements of the International Labour Organisation (ILO).

The decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the cabinet, which also approved a Rs4.188bn severance package to the erstwhile Pakistan Agricultural Storage and Services Corporation (Passco) and auction of 8,198 tonnes of flood-damaged wheat.

The Ministry of Defence had sought allocation of 175,000 tonnes of 100pc indigenous wheat only from 2026-27 crop, saying wheat flour was the main staple food in the army and had a direct bearing on the morale of troops deployed in challenging environments ranging from glacial to desert terrains.

For the last four years, Passco had been supplying 175,000 tonnes to the Pakistan Army under government rates on a 50:50 basis, using imported and local wheat, under the ECC decision.

The imported wheat, however, reportedly caused issues with its taste, cooking, and appearance, and was therefore not liked by the troops, leading to numerous complaints about the quality of chappati made from it.

In November 2024, the ECC again decided to allocate wheat to the armed forces at the 50:50 ratio. As a consequence, the army had to procure indigenous wheat through private firms to ensure better quality food preferred by the troops. This will save an additional Rs2.8bn in expenditure on imported wheat, according to the military’s finance wing. The ECC approved a 100pc supply from local fresh-crop produce.

The ECC also “approved a proposal submitted by the Ministry of Commerce to amend the Import Policy Order 2022, by incorporating a definition of “forced labour” in line with the ILO Forced Labour Convention 1930 (No. 29). The amendment will strengthen Pakistan’s legal framework governing imports, reinforce compliance with international labour commitments, and enhance the country’s trade governance framework, an official statement said.

Under the amendment, forced or compulsory labour would mean all works or services extracted from any person under the menace of any penalty for which the said person did not offer himself voluntarily. However, this definition would not apply to compulsory military service, any other similar service, or essential services for normal civic obligations, as covered by any court of law.

The ECC also approved a summary submitted by the Ministry of National Food Security and Research for the auction of 8,197.989 tonnes of flood-damaged Passco wheat through an open and transparent competitive bidding process, subject to third-party validation, to minimise financial losses, ensure the transparent disposal of damaged stocks, and support the ongoing restructuring and winding-up process of Passco.

The meeting also approved a Rs4.188bn severance package for Passco employees on the pattern of a similar package to Utility Stores Corporation for the payment of compensation and terminal benefits to eligible employees as part of the orderly winding-up of the corporation.

The ECC took up 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.

Published in Dawn, July 3rd, 2026