The Trading Corporation of Pakistan (TCP) has proposed that the government issue bonds to settle Rs222 billion in outstanding markup, as its total receivables have reached Rs311.24 billion as of March 6, 2025.
According to a news report, the move aims to ease the financial strain on TCP, as banks have been reluctant to retire liabilities due to the accumulating interest burden.
During a briefing to the National Assembly panel chaired by Khurshid Ahmed Junejo, TCP Chairman Rafeo Bashir Shah outlined a payment strategy to clear the corporation’s dues. However, no conclusive decision was reached as representatives from the Ministry of Industries and Production (MoI&P) and affiliated entities, including the Utility Stores Corporation (USC) and the National Fertiliser Marketing Company (NFML), were absent. These organizations collectively owe significant amounts to TCP.
Shah urged relevant ministries to ensure their outstanding liabilities are factored into the 2025-26 budget allocations. A Finance Ministry official also recommended that all concerned departments present their proposals during the budget exercise to secure necessary funding.
According to TCP, agreements approved by the Economic Coordination Committee (ECC) confirm Rs17 billion in committed payments from recipient agencies.Â
Additionally, reconciled and undisputed payments from these entities amount to Rs72.29 billion. However, federal subsidies, delayed payment markups, and disputed receivables from MoI&P for sugar procurement contribute to an unresolved Rs221.94 billion liability.
Both federal and provincial governments have declined to cover the Rs222 billion markup, arguing that since the federal government authorized the imports, it should bear the associated costs.
To address the mounting debt, TCP suggested allocating funds in the upcoming budget to clear undisputed liabilities, as the International Monetary Fund (IMF) prohibits expenditure beyond budgeted allocations. Additionally, the corporation proposed that the Finance Division issue bonds to settle the disputed markup, similar to a 2009-10 arrangement when TCP’s receivables stood at Rs78 billion.
Following the discussion, the NA panel directed all concerned federal and provincial ministries to reconcile their financial records within two weeks and formulate a practical repayment plan. It also instructed TCP to present payment details for the past five years to facilitate further deliberations.
