The Ministry of Finance (MoF) has decided to revise its earlier stance on a third-party audit of loans raised by the Trading Corporation of Pakistan (TCP) from commercial banks. Instead of a comprehensive audit, the ministry has now suggested that TCP conduct audits only for disputed amounts between the corporation and the relevant entities, BR reported.
Currently, TCP is paying approximately Rs143 million daily in interest on loans taken for the import of wheat, sugar, and fertiliser. This is due to non-payment by the Utility Stores Corporation (USC), National Fertiliser Marketing Limited (NFML), and the Pakistan Agricultural Storage and Services Corporation (PASSCO).
According to official data, TCP is incurring Rs48.5 million daily in interest on Rs73.7 billion receivables from USC, Rs63.84 million on Rs97 billion from NFML, and Rs30 million on Rs46 billion from PASSCO.
In its latest communication, the Finance Ministry acknowledged TCP’s position and agreed to reconsider the need for a full audit, stating that a third-party audit would be required only for disputes related to quantities of goods supplied or received. In such cases, either mutual reconciliation would be conducted by TCP and the recipient agencies or a third-party audit would be carried out on a need basis.
The Finance Ministry also highlighted concerns regarding TCP’s outstanding receivables, noting that formal memoranda of understanding (MoUs) between TCP and the recipient agencies were lacking, especially with regard to the payment of mark-up on delayed payments.
The Ministry has tasked the Ministry of Commerce to review and resolve these issues with the relevant stakeholders.
Earlier in August 2025, the Finance Ministry expressed concerns about the high interest rates on loans secured by TCP from commercial banks and recommended a third-party audit.
