Rules relative to the Pakistan Agricultural Storage Services Corporation (PASSCO) Ltd

,idstun Agriculturnl Storage & Services Corporation Ltd. PASSCO nENEllAI,: I. PASSCO was established in 1973 and coilllll.e.nced its oporntions in l\1ny 1!)74. ll was rogistored as a Public Limited Compnny with Ill\ Lhorizcd capitul of Rs.100 million and paid up capital or Rs.ao million. 7G% of pnid up capital wns contdbutcd hy five Commercial N11t.ionn1izo<l Dnnks and ADBP an<l hulm1co 25% wns subsc.rilwd by th,: l•'edorul Govorumont.. The corpo1·utio11 ii controllocl by tho Boal'd or Dinid.orB who nro uppointod by tho i,;)uu·o holdors. S<.wrotury MINl•'AL is t.ho Chairman of t.ho Bonrd of Diroctors un<l Munnginit Dirodor 1;, PX-officio Direct.or of t.Jw Bourd. ·> As n l'uhlic Limited Compnny, tho co1·poration hus boon n.ssigned tho follow in!-! main rnlos : a. Provide support price to former::;. for whout, paddy, grum, potntoos, onions and u.ny oth()r .spocificd ngriculturul commodity under direction by the Fedornl Oove.rnment. b. Price: stnhilisut.ion of minor crops for the benefit of C0118Ul11<!1'S. c. Ji;mmro Food security by maintaining reserve of wlwnt for clif.;tribution to the deficit p1•ovinces t.hroui;:ho1.\t; 'the year. cl. Const.ruction of moclorn storage accommodution lo minimi~o st.01·11ge lo~s. <i. Pl'Omoto ngro-bnsml units such ns cold storogos, pulso plants 1md ltieo Husking Mills. f. l'romot.o form 1nuchinory 8orvieoi; f'or t.ho f111·11w1·:;, Jt. l•~liminntu mi<l<llo rnnn un<l improvn marl-;ot inlhu-itt•uuturo for ngdcult.urul prodlu~o. h. Dnvclop h\.llnt1h resource to \tndertuh:o grain mnnngcmont.. j. Collnhorution with intornutionnl ugoncius in tho field of development of storugo facilities und agricultural marketing. {>RGI\NJ:t,A'l'ION: :1. Tho corporut.ion hns it;s Head Offico nt Lnhoro ull(l suh-orticm; in oil t.lrn four provinces with 14 zones, 50 project,1:1 und 6 com;t.ruclion divisions. ~\N CIA L nm-,OUUCFJPERFOUMANC]~; ,1. Pi\88CO li11s paid up r.apitnl of Hs.30 million 111114 ro:-;orvo of Hs.:nn million. PASSCO oporutions nro finlmc<Hl 'th1·ot11rh hunk bonowingi, ut mnrk up of 14% provided through cm;h croclit, limitH 11pprov<id by Ministry of Ji'innnce. 'l'hero is no proforont.inl t.t·ont nwnt. given to PAS8CO by tho Govormnont oxccpt in tho rut.o of mnrk-up i.o. 14% which iA lower thnn the prevailing market rate. 'J'oLul yom·)y turn over of PASSCO is around Rs.5· billion. Capitnl huso of tho corporntion doos not. mutch with tho oporn.t.ionul turn ovor. P.ASSCU is not providml ,my lmdgotury provision for funding it~ oporutions. Tho borrowed money from the banks is retired from th9 ~ulo of the ,:ommodit.ios. 'l'hnro iR no burden on I.he oxchequnr 11s f1.1r oH pny ond ot.lwr oxpondit.uros of I.ho corporotion is concornocl. Profit nml Loss us p1•r Compnnies Ordinnncc is shnrod by its ~hurcholcfors. Ovor a JWl'iod of morn thnn two docndos, sinco c01n1nonc01nont ol' it:; opt:1•11tio11~;, l' AS8CO hns successfully performed tho BI>ocificd rolo. 2 G JiA IN STOH.AG l 1~: n. PA8SCO hns ostablished infrustructuro to dosign, con:;t.ruct. ancl ovorsoe t.ho dovolop1nont of grnin in Paldstun. In t.his J>t'O(~o~s I> ASSCO hns clovolopt,d four t.ypm; of storngcs : * lJouse type Go<lowns A· Opm1 Hulk Heads * J\.foehunicul SHos * H.niso<l PlatSorins G. Through engineering sm·vicos PASSCO hns enrned int.ornntional repute fro1n \Vorlcl Bank, Asian Dovelopmeut Dunk, <lnpnum;o, Austrnlinn au<l Donish Govorn1no11ts and othor World bodiob concerned with storage and consultancy services; Becauso of Ow quality of work und cost effectiveness of housetype godown::; const.ruct.od by PASSCO, t.he World Bunk nmninated PASSCO for eonstruction of 500,000 M.'l'ous of storage capacity. PAHSCU complotocl tho project in 1986 uffocting a saving of Rs.150 million. PASS(;O covered storage capacities arc around 5 lac M.'l'ons uud hos t lw"eapahilit.y t.o construct 1·aised plinths for open storage on requirod hnsis. INTHODUCTION OF BULi{ HANDT~lNG 'rECHNOT.OGY: 7. PASS CO is endeavcmring to reduce the handling cost. Conventionally tho handling of grain in Pakistan is jute bags. 'J'ho cost of jute bags has increased which is at present around Rs.50/- l>u1:. Lilrn mnny <·>ther devHlopod countries PASSCO is also making efforth to eliminate tho bag handling. PASSCO has · acted cu; the implomnnt.ing agency of M.INFAL to introduce bulk grain hundliug :,.;yslem in tho count.ry in collaboration with USAID and Knnsas Stuto l iniv<irsit.y J\SlJ-USA. 8. To g(~m· up and convm·t the complete system fr01n hag to hulk right. from t.he farin gate. to thH ond-uso i.o. flour mill, there is st.ill n long wny to g<,>. PASSCO has successfully applied systen1 or bulk stor·ni1) in tho opon us woll 11s godowrn; & silos und opon lmlkhoa<ls. Tho ~y~d,.•111 is proved eompotit.ivo, offichut mid cost effectivo. :\lioul. <,0% of tlw whout. is stored in bulk form. ('01\Jl\1 on l'l1 Y OPEHATIQNS !). l'J\SSCO 1s tho support prico implementing niw,wy of < iovp1·11ment of Pakistun. It hris undertaken procrn·onwnt. OJ>OrHt.ions of variorn; agricultural commodities Hirn whont, gram, pucldy, pulsPs. onions. sunflower etc. in support price us well u:,; 1wko stabilization role. Its 1najor co1nmoclit.y oporations oro: n. IDIT~AT; l>rocurement of wheat is tho ninin t.usk of t lw corporation. PASSCO procures wheat on bohnlf of Feclm·nl Govermnent nnd a1·rangf~S i l.s clospntd, to t.ho deficit p1·ovinces, Defonce Forces n11cl i.:;pecifiecl agencies on ollocntion fr01n tho I•'cdnrnl Govornmont. Initially tho IH'ocuromont, WHs l'<?stl'ict.cd to tho Punjab Province but Hinco 1 DB:\, J>1\SSCO has started whout procurement in l.lw pl'ovinces of Sindh and Bnlophiston n1so. Yonrly J>1'ocuromont is around 1.2 million tornws. In t.his Operation PASSCO lws nlwny~; JH·ocunHl moro whont than t.he potont.iul of t.!in nron bocn w-:o of i I.H prompt ,.md officiont sorvico::; to t.110 {!rowers. Sinco l9!Ja onwurd, PASSC.:O has oliminntml tho st.orngo loHscs which is n unique: oxnmpJo in gruin post hnrvost soclor. Tho infrastruct.ure uvailnblo with PASSCO is for 1.G M.tonncs. h. PAUDY: PASS CO is designated Support. Price Implementing Agency for pncldy. Undor this rolo PASSCO is procuring paddy in Punjab, Sindh n11cl Bnlochistnn since 1978-7H. Tho procuroment. of pncldy varies from f>D0O to ono lnc mot.ric t.onnus. 4 c. 'l'lw g-rnph of procuromont has now dedinod lH~cnuso I.ho pricos invnriul>ly are highor than Uw :-;upport, pril:o. llowovor, PASSCO's 111·08oncu i11 t.linn mm·lwt. for procurmnont on roquirod l,m;ih ('nsuros sup1)ort pricos to tho growers nt tho t.imo or h,ll'V(::-;t.. PASSCO ht.ts coutribtH,t:ll in improving t.he qunlity of rico through npplicaUon of' rico proco::;sing technology in collaboration with ,Jupnn Intornntionul Co-oporution Agency (clICA). ·1-)u·1· 0 ·1i'S· ,.-, ...... P ASSCO in tho past has undertaken 1n·ocun!mcnt of pulses with a view to stuhilize it.s prieos. Sinco 1H87 PASSCO has been dosignutod ns u support price implmnentin.g agency for g-rmn. 'l'lw 111·ocureincnL of gru1n ya.rie8 in t.tccordunco with tho hwol of pl'ocuromcmt and tho 1narkot rnt.o nt. tho timo of harvest. PASSCO <loo~; 110t monopoli:t.o it.H procuromont. lnvurihbly PASSCO's prosenco in tho 1narket for grnm procuL·mncmt at the tin1e of harvest ornmros support prico to tlrn growers without physicul procurrnnent of this conunodity. d. POTA'l'OIGS & ONIONS: Procurmrwnt of 1wtntoos & onions was carried out in Balod1i:.;tan nnc.l Punjab respectivoly unt.il 1 nus5.8G w hon tho HUlll.8 WOl'O truusforrod to Alv18L (another Federal Govornmont Orguni:tat,ion). rl'his orgnnization has since boon ubofo.;lwd and tho oporutio11::; have sinco boon transforrod to PASSCO. Tho c01nn10ditios aro purchmmd according to tho Hupport pl'icos fixed by t.lw F'odcwnl Govormnont nnd tho same arn st.ol'ed/sold in tho opon 1narkot accordii1g to eurront. provailing pJ'icos. 'l1ho losses inm.u-rod on t hu:-:.o opurat.iom; nro acadomicnlly roilnbursod l>y tho [i'irnHw0. Division, nlthough in our oxporionco 5 I.II(! lossm; nro 110vor p11id lmdc 1111d I I Hi corpor11t.io11 hns to ub~;orl, t.ho Hllll\ll 0111. of" it:, ow11 l'C !SOI ll'CUS. On winding up of the l~c.liblo Oil Sc~0<l Division ol' nhoo Corporation of Pukist.nn, PASHCU. wn:; <mt.rustn<l with the rm,ponsH,Hit;y of sun flower procurmnent. nt short; notice. PASSCU successfully carried out thoso oporations u1Hl procured ubout 4000 M.tonncs in o.ll t.ho provinees in tho year HJ93-94 un<l suffered 110 qunlity lo~s. On crontion of gdiblc Oil Seed Division undtir MJNT1'AL t.he responsibility has ngmn boon t.runsferrod out fro1n PASSCO. t 0. Applying tho stondnrd 11or1ns for judging PASS.CC} lH~rformnn<'.e i.('. profHnhility, operating ofl.iciency, creditwort.hincss, mal'lrnt.in~ ,whiovomontH 1111d vnrious JH"OHcrihocl finunciul p:11·111110(.01·.s tho ('.Ol'J><>rnt.ion hns J>rovod to hnve strong finunciul lmso mid <i11rnin1.: cnpucity ovor tho yonrs. I l. A glnnco nt thcso linnncial pnrainotors und salient l\iat.u1·1!:.i elnarly indientns thnt in tho fumily of tho public sector 01·gnnizat.io11.;, l ':\SSCO oxcols in 1wrformunce and has como up a:; n miiquu orgnnbmtioff which has suct~ossfully completed its nm,ii~nod rolo i11 prico st11hili~1d,ion cmcl support pl'ico implomontution wilhout burdening the exchequer. Tho developn1cnt. of murketillg inf'rnstructurc has nev<,r been out of sight. Its collahornt.ion wil h int.crnnt.ionnl agencies and their nppr<~cia.tion on rocord is testimony lo this st.nt.enwnt.. Finnncinl pDrumet.ers arc compnt.iblo to Ull,\' mnrlrnt,ing org,mi?.ntion .in public and pl'ivnte sector. n. PASSCO is n profitublo concern and earned H pr·ofit, of lls.110.7 1nillion, Rs.HH.6 million, H~. In I .B mi11ion nnd Hs.158 million in tho yom· 6 1 no:·1.n.1, HH>-t-no, 1H05-DG and ni:-;puct.i voly. h. Duri111J pn~t six yonrs PAS8CO has pnid inconw t.nx t,o tho. tuno of lls.325.04 million out. of its pr,)lit.. C. Accumulat.od u rosOJ'VH of R:-;.375 n1illion frmn its yeur]y profit .. d. P.'\SfH..!O hn:-; maintuinocl dividend of 20% t.o its ::-lrnro holdors for the last n1uny years. e. It has evolved a sche1no to finunce support price on 1ninor crops without rohnbursmuont fron1 Govormnont. Loss, if any, on these operations is nwt. out of tho revenues earned fron1 invcst1nents of its rmrnrvo capital. f. PASSCO iH onsuring high dogree of oporutionul and finnncinl prolfoioncy in tho organization. All loan:-1 from tho hunlrn a.re pt.ticl within t.he st.ipulnt.ed poriocl. g. P,\SS(;() is n rogulnr n101nhor of Associution of Food l\larlrnt ing Agencies for Asia and Pucific (AFMA) nnd during this yom· has boon oJectod us Chnirmnn in n monl.ing hold in Beijing. h. In recognition of scl'vices in the fiold of ongineol'ing work PASSCO is nominated as tho ugrnwy fo1· relwbilituUon of Provindul }i'ood Uodowns. J. En:-mrod support price 111 wheat, lpaddy, gt'an1, potntoes HlHl onions. 7 1. I lm-1 succoodod in oliminutihg Hl.01·ui:o loss t.h us crout.ing record in grnin mnnugo1nont in l 'ukist.nn. m. J Jn~ cnrnod national and intornuLionnl r<!puto :u1d nppreciut.ion from intonrntionnl 111-:ondo:.-; for it:-; quality in construction of goclowns iu .L'ukitit.1111. n. PASSCO is pionoor in introduction of low and offoet.ive bulk gruin handling system in Puldst:un.