The Trading Corporation of Pakistan (TCP) is grappling with Rs308 billion in outstanding receivables as of February 28, 2025, primarily due to delayed payments from various government entities, including the Pakistan Navy, BR reported.
Among the largest defaulters, the Utility Stores Corporation (USC) owes Rs102.26 billion, while National Fertilizer Marketing Limited (NFML) has pending dues of Rs122.65 billion.
Other significant receivables include Rs17.67 billion from the Ministry of Industries and Production (for sugar payments), Rs16.35 billion from Punjab’s Food Department, Rs12.3 billion from Khyber Pakhtunkhwa’s Food Department, Rs8.91 billion from Sindh’s Food Department, and Rs8.83 billion from Balochistan’s Food Department.
Additional outstanding amounts include Rs6 billion from PASSCO, Rs6.25 billion from the Government of Gilgit-Baltistan, Rs2.1 billion from the Government of Azad Jammu and Kashmir (AJ&K), Rs2.64 billion for cotton subsidies under the Ministry of National Food Security and Research, Rs1.58 billion from the Directorate General Procurement (DGP) Army, and Rs216 million from the Pakistan Navy. The Ministry of Finance owes Rs194 million for rice payments.
Of the total Rs308 billion in receivables, the principal amount accounts for Rs93.69 billion, while the markup on delayed payments has surged to Rs214.39 billion. Sources revealed that recipient agencies had committed to repaying Rs16.83 billion through written agreements and federal government assurances under Economic Coordination Committee (ECC) decisions. Additionally, Rs72.29 billion in partial payments have been accepted by recipient agencies, either through reconciled documents or ECC-backed commitments.
The backlog has forced TCP to make daily bank payments amounting to millions of rupees, further straining its financial position.
The federal government’s outstanding liabilities, including markup on delayed payments, disputed principal amounts, and receivables linked to sugar payments under ECC directives, total Rs218.96 billion.
TCP’s assets have been valued at Rs86.28 billion by M/s Joseph Lobo (Pvt) Limited, with Korangi Godown worth Rs36.76 billion, Pipri Godown valued at Rs41.08 billion, Landhi Godown at Rs7.01 billion, TCP House at Rs155 million, and the FTC building at Rs1.25 billion.
Despite these assets, TCP’s rental income for FY 2023-24 stood at just Rs500 million, yielding a low return of 0.6%.
The Commerce Ministry and TCP have repeatedly raised concerns about unpaid dues at various forums, including the Economic Coordination Committee (ECC), as they seek a resolution to ease the corporation’s financial strain and ensure smooth operations.
