Fact-check: Punjab's Rs27bn school milk contract awarded to army-run company?

Viral social media posts allege that the Punjab government has awarded the contract for its Rs27 billion-worth nutrition program, which will supply free milk to school children, to an army-run private company.

The claim is false.

Claim

On September 23, Pakistan social media users claimed that Punjab Chief Minister Maryam Nawaz Sharif’s newly-launched School Nutrition Program, under which free milk boxes will be provided to children in primary public schools, has awarded the contract to Fauji Foods Limited, a military-run food and dairy company.

Online users further claim that through the contract, Fauji Foods Limited will pocket a profit of Rs7.1 billion. The claim has been shared widely on several social media platforms.

Fact

In reality, the contract for the nutrition project has gone to Metro Pakistan Private Limited, not Fauji Foods Limited, confirms a Punjab government official and a Metro employee.

Fahad Nisar, the focal person to the minister for education in Punjab, told Geo Fact Check via a written reply that only Metro Pakistan has been awarded the contract to supply milk packs to children in three districts of the province, namely Dera Ghazi Khan, Muzaffargarh, and Rajanpur.

Nisar added that the contract with Metro was valid till May 30, 2025. He further explained that after advertising for the project in May this year, four companies 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.

Of the bids submitted, the official said, Metro Pakistan’s bid was the lowest.

“The price in Dera Ghazi Khan and Muzaffargarh for an ultra-high-temperature (UHT) full cream milk, including fortnightly delivery, is Rs64 per 175ml (millilitre),” the official told Geo Fact Check, while for Rajanpur the price is Rs63.75.

Geo Fact Check also reached out to Metro Pakistan for contact details.

Hammad Haider, the division manager of corporate affairs at Metro Pakistan, also confirmed that there was an active contract between Metro Pakistan and the district education authorities in Rajanpur, Dera Ghazi Khan, and Muzaffargarh.

He further denied that the contract was a joint venture with any other company, adding that the contract's combined value as of now was Rs5 billion inclusive of taxes.

On September 5, Punjab’s chief minister announced a Rs27 billion project to provide free milk to young children in the province to combat stunting. The project has been initially rolled out in Dera Ghazi Khan, Muzaffargarh, and Rajanpur, which have the highest rates of malnutrition and stunting.

Another related fact-check to the project can be viewed here. 

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