13STHMEETING OF PASSCO's BOARD OF DIRECTORS TO BE HELD ON

04fA April, 2019 AT 1000 HOURS IN CONFERENCE ROOM OF PASSCO,

HEAD OFFICE, 11-KASHMIR ROAD, LAHORE

AGENDA

ITEM
NO. SUBJECT

1. CONFIRMATION OF THE MINUTES - 134TH BOD MEETING HELD ON 25'H

JANUARY, 2019
2. PROGRESS ON THE DECISIONS OF PRECEDING BOD MEETING.

3. APPROVAL OF WHEAT PROCUREMENT POLICY FOR THE YEAR 2019-20.

4. APPROVAL FOR THE REGULARIZATION OF DRY RATION TO FIELD STAFF.

5. FEASIBILITY REPORT ON COLD STORAGE.

6. APPROVAL FOR RE-DESIGNATING EXISTING STAFF.

-~

7. APPROVAL FOR RE-DESIGNATION OF MINOR CROP STAFF AS

CHOWKIDARS AND SUPERVISORS AT DIFFERENT SITES ACROSS
PAKISTAN.
~
8. TO APPROVE THE BONUS FOR THE YEAR 2019-20.
I
9. APPROVAL OF THE BUDGET FOR THE YEAR ENDING 31'" MARCH 2020.

10. ANY OTHER POINT

 MINUTES OF 135TH MEETING OF PASSCO's
BOARD OF DIRECTORS HELD ON 041H APRIL, 2019

1. The 135th meeting of PASSCO Board of Directors was held on 04th April, 2019 at 1000
hours in the Committee Room of PASSCO, Head Office, Lahore. Following attended:-
1. Dr. Muhammad Hashim Popalzai
Secretary NFS&R/ Chairman PASSCO Chairman
Ministry of National Food Security & Research
Government of Pakistan
2. Mr. Khurram Saeed Naik
Executive Vice President! Divisional Head Director
Commercial & Retail Banking Group
National Bank of Pakistan
3. Mr. Asif Bashir
Chief - Commercial & Retail Banking Group (South) Director
Allied Bank limited
4. Mr. Hassan Nawaz Tarar
Group Head Security & Marketing Director
MCB Bank limited
5. Mr. Kashif Umar Thanvi
General Manager - Head Rural Banking, Director
Habib Bank limited,
6. Mr. Muhammad Nadeem Chohan
SEVP/ Group Head,R& RAM, SAM & OREO, Director
Credit and operation Division,
Zarai Taraqiati Bank limited

7. Mr. Talat Khurshid Mian

General Manager - Central North, Director
United Bank Limited.
8. Mr.Allah Nawaz
Asstant Economic Adviser, (CF-C) Director
Minstry of Finance, Government of Pakistan
9. Mr. Muhammad Khan Khichi
Managing Director Managing Director
PASSCO, Head Office
10 Mr. Emad Nazir Ahmed
Company Secretary

2. The meeting commenced with the recitation from Holy Quran.

Item NO.1

CONFIRMATION OF THE MINUTES _134TH BOD MEETING HELD ON 25TH JANUARY, 2019

3. Minutes of 134th meeting BOD held on 25.01.19 duly approved by Chairman BOD was
placed before the Board for confirmation. The Board considered and confirmed the minutes.
HIGHLIGHTS ON CURRENT ACTIVITIES.

4. The Board was briefed about the current activities of PASSCO:-

a. DISPOSAL OF WHEAT STOCK.
The Board was apprised about the Wheat stock position and allocation vs
lifting position of agencies/provinces. The Board considered the progress of lifting of
stocks against approval for export. The management briefed about reasons for non-
lifting of stocks by parties. One of the reasons briefed was tedious decision making
process at Federal Government level. The Board directed the management to request
M/o NFS&R for seeking blanket approval from Federal Government authorizing M/o
NFS&R / PASSCO to sell annually prescribed quantity of Wheat stocks after following
the prescribed procedure of disposal ensuring transparency.
b. RETIRED EMPLOYEES FINANCIAL ASSISTANCE SCHEME (REFAS)
The Board was apprised that at present PASSCO employees do not have
post-retirement benefits like gratuity, pension, etc. The management is working on a
model to introduce an assistance package for retired employees of PASSCO. The
model has been presented to HR Committee of the BOD once and further working
under the advice of the committee is being done. The model shall be presented to the
Board through HR Committee of the BOD.

ITEM NO.2
UPDATE ON THE DECISIONS OF PRECEDING BOD MEETING

5. The Board was apprised about the following progress on the decisions taken on
preceding BOD meetings. The Board considered the progress and gave following instructions:-'
A. OUTSTANDING RECEIVABLES OF PASSCO AND AGING ANALYSIS OF
PASSCO RECEIVABLES.
The Board showed its concern on the long outstanding receivables and
emphasized the need for early recovery of outstanding receivables of PASSCO from the
Government of Pakistan and Gilgit-Baltistan, The Board directed the PASSCO
Management to take up the matter with Finance Division through M/o NFS&R for the
earliest release of funds allocated in the budget for the year 2018-19.
B. WHEAT - EXPORT AND SALE
The Board directed the management to setup an in-house process to generate
periodical report on Wheat encompassing aspects such as crop growth pattern,
expected yield, harvest timings, stock holdings by public/private sector,
domestic/international market rates, international Wheat yield/growth/prices, etc. The
management may utilize reports of different local and international agencies to collate
and prepare its own analytical report for the consumption of management and Board
members.

C. CONSTRUCTION OF 10X GODOWNS CHAK 135-16/L (KHANEWAL) AND 04 X

GODOWNS AT IQBAL NAGAR (HAFIZABAD), CONSTRUCTION OF 23X GODOWNS
AT VARIOUS SITES IN PUNJAB & SINDH AND REHABILITATION OF
GODOWNS.
 The Board directed the management to complete projects within the specified time
limits as well as to ensure to follow all legal and codal formalities i.e. PPRA and other
Government rules.

D. SUPPLY OF CERTIFIED SEED.

The Board asked to present the proposed project to M/o NFS&R and accordingly
the matter may be placed before the Board.
ITEM NO.3
APPROVAL OF WHEAT PROCUREMENT POLICY FOR THE YEAR 2019-20.

6. GM Field briefed the Board about the salient features of wheat procurement policy 2019
and highlighted differences of proposed policy with last year's approved policy. The Board
inquired about the compliance with the standing decision of the Board that no deviation from
approved policy be made. GM Field briefed the board that there has been absolute no deviation
from last approved policy.
7. The Board inquired the reasons for increasing field zones to 15 as compared to 11 zones
approved in HR Policy. GM Field explained operational exigencies arising due to geographical
spread bifurcation of the then notified zones was inevitable. The Board directed that such HR
and structural changes should be put up as a separate agenda item along with cost and benefit
analysis and then be included in proposed wheat policy. The board further observed that policy
and operational plan is being presented as a single document at present. The Board directed
that wheat policy and operational plan be presented separately for consideration and approval
to the Board. The Board resolved:-
''To approve the Wheat Procurement Policy for the year 2019-20".
ITEM NO.4
APPROVAL FOR REGULARIZATION OF DRY RATION TO FIELD STAFF
8. GM Field briefed the Board about the observation of commercial audit and directions of
DAC thereon. GM Field explained that Dry ration is an incentive provided in form of ration
purchased and distributed by purchase committee notified at each zone. He further briefed that
dry ration is not an allowance and is not paid in form of cash to anyone. It is an operational
expense and falls within the delegated financial powers of Managing Director under Section IV,
clause 2 of Book of Administrative and Financial Powers. He also explained in detail that ration
is being provided only to daily wage staff deputed in field and provision of said incentive has not
only motivated related daily wage staff but has also reduced the risk of pilferage as the staff is
bound to stay at the storage locations all the time. The Board considered the agenda at length
and after due deliberation resolved:-

"As explained by GM Field said expenditure falls within the delegated financial
powers of Managing Director therefore the Managing Director has incurred said
expense within his competency".
ITEM NO.5
FEASIBILITY REPORT ON COLD STORAGE.
9. The Board considered the agenda at length and after due deliberation directed
management to prepare detailed feasibility covering all financial aspects clearly identifying
component wise project cost, IRR, payback period and highlighting economic significance of the
proposed project vis-a-vis comparison with similar projects in private sector and market
demand. The Board also directed that revival of service sector of PASSCO may be considered
in direction encompassing commodities relevant to the organization such as Paddy/Rice, grains,
pulses, etc.

ITEM NO.6
APPROVAL TO RE-DESIGNATE EXISTING POSTS
10. The Board considered and discussed the recommendation of the HR Committee of BOD
PASSCO (8th meeting held on 28-03-2019) and after due deliberations, resolved to:-
"Approve the proposal as narrated below to readjust! re-designate by
rephrasingl changing nomenclature of existing vacant Posts:-

Re-desi nated Post Existin Posts of Minor Cro No. of Post

01
01
01
Driver 02
Driver 01
Assistant Purchase Ins 01
Total 07"

ITEM NO.7
APPROVAL TO RE-DESIGNATE STAFF OF MINOR CROP AS CHOWKIDARS AND
SUPERVISORS AT DIFFERENT SITES ACROSS PAKISTAN
11. The Board considered and discussed the recommendations of the HR Committee of BOD
PASSCO (8th meeting held on 28-03-2019) along with the observation of Mr. Asif Bashir,
Director ABL thereon. After considering various aspects including the court decision the Board
directed the Management to get the legal opinion from Law Division, Government of Pakistan
through M/o NFS&R regarding the need of re-designating the staff in light of court order and
resubmit the agenda through HR Committee of BOD.
• ITEM NO.8
TO APPROVE THE BONUS FOR THE YEAR 2019-20
12. The Board considered and discussed the recommendations of the HR Committee of BOD
PASSCO (8th meeting held on 28-03-2019) and after due deliberations, resolved to:-

"To approve the bonuses equal to Rs.60.204 Million, as per bell curve policy,
payable to PASSCO employees, including deputationists, on the forthcoming Eid
ul Fitr and Eid ul Azha during the financial year ending on 31st March 2020 and
allow it to be charged as expense during the year."

ITEM NO.9
APPROVAL OF THE BUDGET FOR THE YEAR ENDING 31sT MARCH 2020

13. The General Manager (F&A) presented the Pre-Operation Budget of PASSCO for the
Financial Year 2018-19. The Board considered the recommendations of The Standing Financial
Analysis and Audit Committee of the Board of Directors' meeting held on 28th March, 2019,
discussed various aspects of the Budget and after due deliberation resolved to:-
"Approve the pre-operation budget estimates for the financial year 2018-19 on
the recommendation of Standing Financi~1 Analysisl Audit Committee of
BOD."

EX AGENDA ITEM NO.1

IDENTIFICATION OF DISTRICTS PRODUCING EXPORTABLE WHEAT QUALITY

14. Chairman BOD proposed an ex agenda item that PASSCO may identify districts,
within its defined procurement areas, that produce better quality of Wheat that can fetch
better rate in international market. For this purpose Gluten and Protein of Wheat procured
in all districts in PASSCO's procurement area be tested from a reputable laboratory in the
country. Wheat procured from areas that meet export quality shall be stored separately in
Godowns/SILOS under intimation to Mlo NFS&R and such designated Wheat stock shall
be used preferably for export purposes. The Board deliberated on the agenda, appreciated
the proposal and resolved:-
"To approve to identify areas producing exportable quality by testing the
quality from reputable laboratory in the country and to store in designated
godownslSILOS for export purpose under intimation to Mlo NFS&R"

15. The meeting then ended with a vote of thanks to and from the Chair.

Approved