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Govt bodies’ outstanding payments to TCP exceed Rs300 billion

Govt bodies’ outstanding payments to TCP exceed Rs300 billion

Web Desk
Mar 01, 2025

ISLAMABAD: The Trading Corporation of Pakistan (TCP) is facing significant financial challenges, with outstanding payments from various government entities amounting to Rs308 billion as of February 28, 2025.

These unpaid dues have put pressure on the TCP, forcing it to make daily payments of millions of rupees to banks, according to Business Recorder sources in the Commerce Ministry.

Among the biggest debtors is the Utility Stores Corporation (USC), which owes Rs102.262 billion, and National Fertilizer Marketing Limited (NFML), with dues of Rs122.657 billion.

Other notable entities include the Ministry of National Food Security and Research, which owes Rs2.649 billion in cotton subsidies, and several provincial food departments, such as PASSCO (Rs6.009 billion), Sindh Food Department (Rs8.910 billion), Punjab Food Department (Rs16.354 billion), KPK Food Department (Rs12.308 billion), and Balochistan Food Department (Rs8.834 billion).

The Government of Gilgit-Baltistan owes Rs6.251 billion, while the Government of Azad Jammu and Kashmir (AJ&K) has an outstanding payment of Rs2.1 billion. The military entities, DGP Army and Pakistan Navy, owe Rs1.584 billion and Rs216 million respectively.

Meanwhile, the Ministry of Industries and Production has yet to pay Rs17.674 billion related to sugar, and the Ministry of Finance owes Rs194 million for rice payments.

As of February 28, 2025, the principal debt owed to the TCP amounted to Rs93.693 billion, while Rs214.396 billion consisted of accumulated markup.

Sources further revealed that some agencies had committed to paying back Rs16.831 billion, including both the principal and markup, through formal agreements and government assurances under the decisions made by the Economic Coordination Committee (ECC).

Additionally, partial payments totalling Rs72.296 billion have been agreed upon in reconciled documents or official minutes, backed by ECC rulings.

The total outstanding amount, which includes delayed payment markups and other disputed principal amounts, stands at Rs218.962 billion. This includes receivables from the Ministry of Industries and Production for sugar payments and disputed amounts owed by various government bodies.