Is the milk supply contract in Punjab granted to Fauji Foundation?

A recent Geo Fact Check story reveals that the Punjab government has awarded the contract for its nutrition program to a private company instead of the Fauji Foundation, which will provide free milk to school children. The project is worth Rs 27 billion.

Initially, it was claimed that Punjab Chief Minister Maryam Nawaz Sharif’s newly launched school nutrition programme, under which milk cartons will be provided free to children in primary government schools, was given to Fauji Foods Limited.

Online claims also stated that Fauji Foods Limited will get a profit of Rs 7.1 billion through the deal.

However, the reality is that the contract for the nutrition project has gone to Metro Pakistan Private Limited and not Fauji Foods Limited, a Punjab government official and a Metro employee confirmed to Geo Fact Check.

A focal person for the Punjab Education Minister, Fahad Nisar, told Geo Fact Check in a written reply that only Metro Pakistan has been awarded the contract to supply milk packets to children in three districts of the province, including Dera Ghazi Khan, Muzaffar. Garh and Rajanpur.

Additionally, he said that the agreement with Metro is valid till May 30, 2025.

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An advertisement for the project was published in May this year, after which four companies were qualified for the bidding process, but only two (Engro Pakistan and Metro Pakistan) submitted their bids.

Fauji Foods did not even apply for the project.

The focal person revealed that among the submitted bids, Metro’s was the lowest.

“The price of Ultra High Temperature (UHT) full cream milk in Dera Ghazi Khan and Muzaffargarh, including fortnightly delivery, is Rs 64 per 175 ml and Rs 63.75 for Rajanpur,” the official told Geo FactCheck.

Metro Pakistan also confirmed that there is an active agreement between Metro Pakistan and District Education Authorities in Rajanpur, Dera Ghazi Khan and Muzaffargarh.

It also denied that the contract was a joint venture with any other company. The total value of the contract, including taxes, is five billion rupees.

Chief Minister Punjab Maryam Nawaz announced a Rs. 27 billion plan to provide free milk to young children in the province to combat stunting.

The project was initially launched in Dera Ghazi Khan, Muzaffargarh, and Rajanpur, where malnutrition and stunting rates are highest.