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 18th, 2012.
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 18th, 2012.