Pakistan Agriculture Storage and Services Corporation (Passco) has posted a net profit of Rs421.312 million in the financial year ended June 30, 2013 because of sale of wheat crop purchased from farmers, which is described as the best performance in the past five years.
According to the accounts audited by AF Ferguson and Co, Passco also paid Rs814.944 million in taxes, says a press release.
In the annual general and board of directors’ meeting held on July 29, Passco unveiled a plan to enter into certified and graded seed business, which would help bridge the existing gap and ensure increase in supply of certified seeds to the farmers, thus improving the national crop yield.
After a gap of more than 30 years, Passco will shortly start construction of new storages in Khanewal and Hafizabad. This project, which will have the capacity to store 37,000 tons of grain, will be entirely financed by Passco itself from funds generated by it.
In 2013, Passco purchased 1.15 million tons of wheat in the provinces of Punjab and Sindh at the support price of Rs1,200 per 40 kilogrammes.
It was carrying forward a stock of one million tons of wheat from 2012. It borrowed Rs48 billion from commercial banks at the markup based on market rates to buy wheat in 10 zones – nine in Punjab and one in Sindh – during the 2013 crop season.
Passco, which was established in 1973 and commenced operations in May 1974, was registered as a public limited company with authorised capital of Rs100 million and paid-up capital of Rs30 million.
The central government contributed 25% of the paid-up capital and five commercial banks and Zarai Taraqiati Bank Limited provided the remaining. A board of directors monitors the functions of the corporation, which plays a key role in ensuring food security in the country.
Published in The Express Tribune, August 3rd, 2013.