Pakistan’s food sector continues to struggle under a growing financial burden, with the country’s circular debt swelling to Rs325.6 billion, The News reported, citing official data from the Trading Corporation of Pakistan (TCP).
As of September 30, 2025, the combined debt owed by federal and provincial agencies to TCP stands at Rs88.28 billion in principal, with a staggering Rs237.32 billion in accumulated markup. This means nearly three-quarters of the debt comes from interest charges rather than the original principal, underscoring the failure to recover dues and manage the sector efficiently.
The National Fertilizer Marketing Ltd. (NFML) is the largest defaulter, with outstanding liabilities exceeding Rs126.78 billion. The Utility Stores Corporation (USC) follows closely, owing Rs110 billion. Both entities, controlled by the federal government, are central to the country’s food supply system, raising concerns about financial mismanagement within state-owned enterprises.
Among the provinces, Punjab leads the debt accumulation with Rs17.59 billion, followed by Khyber Pakhtunkhwa at Rs13.24 billion, Sindh at Rs9.59 billion, and Balochistan at Rs9.50 billion. Gilgit-Baltistan and Azad Jammu & Kashmir also have outstanding dues, amounting to Rs6.72 billion and Rs2.26 billion, respectively.
Additional debtors include key players in Pakistan’s food sector, such as the Pakistan Navy, Directorate General Procurement Army, PASSCO, the Ministry of National Food Security and Research, and the Ministry of Industries and Production. The total amount owed by these entities is significant, adding to the growing burden on the country’s food security framework.
This unchecked circular debt in the food sector mirrors similar challenges faced by Pakistan’s power and gas sectors. Experts warn that if the government does not implement stricter accountability measures and ensure timely payments, the food sector could face a liquidity crisis, threatening both food security and market stability.
