PASSCO asks NA panel to help recover dues

Grain agency faces financial crunch as receivables reach Rs19b.

ISLAMABAD: With a warning of imminent default due to excessive borrowing from banks, Pakistan Agricultural Storage and Services Corporation (Passco) has sought assistance of a parliamentary panel in recovery of dues amounting to Rs19.7 billion from regional and provincial governments and other organisations, including the Pakistan Army, on account of wheat supply.

In a briefing to the National Assembly Standing Committee on Food and Security, Passco officials said they had to pay Rs12 billion mark-up on Rs93.54 billion of loans taken from commercial banks in financial year 2011-12 to power its operations.

In 2010-11, Passco paid mark-up of Rs11.1 billion on Rs81 billion worth of loans and a year earlier it spent Rs10 billion on mark-up on borrowing of Rs77 billion.

In the case of receivables, Passco was to recover Rs11 billion from Gilgit-Baltistan as on October 10, 2012, Rs2.4 billion from AJK, Rs266.722 million from defence (Pakistan Army), Rs132.725 million from Khyber-Pakhtunkhwa, Rs114.87 million from utility stores, Rs289,000 from Balochistan, Rs1.54 billion for supply of wheat under the World Food Programme and $0.619 million from Afghanistan.

In addition to these, Passco was to receive Rs3.8 billion on account of mark-up and financial charges from different agencies.

The officials asked the panel to give directives to the finance ministry to help clear the dues.

Published in The Express Tribune, October 18^th, 2012.