TCP to recover Rs259b debts
In a shocking development, it has surfaced that the provincial governments and various institutions owe billions of rupees to the Trading Corporation of Pakistan (TCP).
According to the documents available with The Express Tribune, the TCP has to recover Rs259 billion from 13 institutions and the amount of interest to be paid to private banks exceeds the principal dues.
The TCP’s liabilities accrue interest of $600,000 per day. Out of TCP’s Rs259 billion liabilities, Rs153 billion is interest amount, whereas, the principal amount is Rs105 billion.
According to the documents, The Utility Stores Corporation of Pakistan owes more than Rs86 billion and NFML owes over Rs104 billion in respect of the subsidised and imported goods.
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Moreover, provincial governments are also among the defaulters. According to the documents, the Sindh Food Department has to pay more than Rs8 billion and the Punjab Food Department is in default of over Rs13 billion. Similarly, the Khyber Pakhtunkhwa Food Department is in default of Rs9.9 billion, the Balochistan Food Department owes Rs7 billion and the Azad Kashmir government also has to pay Rs1.67 billion.
The Ministry of National Food Security and Research has to pay Rs2.14 billion for cotton subsidy.
Talking to The Express Tribune, the TCP Chairman said these amounts are due in respect of the import of wheat, urea fertiliser and sugar. “There are difficulties in repayment of commercial loans due to non-payment of dues by various institutions,” he said and added that no money is allocated in the budget to pay these dues.
Published in The Express Tribune, December 6th, 2023.