ISLAMABAD: Finance Division on Monday expressed its inability to allocate funds as Technical Supplementary Grant (TSG) to retire bank loans of Trading Corporation of Pakistan (TCP), as Utility Stores Corporation (USC) and National Fertilizer Marketing Limited (NFML) are reluctant to clear their payables.
This stance was taken by a senior official of Finance Division at a meeting of a panel of National Assembly convened to consider and resolve TCP’s long outstanding issue of receivables against various Ministries/ Organisations on account of import of urea, sugar and wheat. The duration of receivables is from 2008-2022.
The panel comprising of Rana Iradat Sharif (Convener), Tahira Aurangzeb and Syed Javed Ali Shah heard the viewpoints of Ministry of Commerce, TCP, Ministry of Industries and Production, USC and NFML.
According to TCP’s claims, stock of its receivables stood at Rs 255.16 billion as on March 2023, of which share of USC and NFML was Rs 173 billion (67.8 percent), PASSCO Rs 45.8 billion (17.9 percent) and others Rs 36.53 billion (14.3 percent).
During discussion, the panel was informed that out of total receivables of Rs 218.806 billion of USC, NFML and PASSCO, the balance amount was Rs 143.676 billion whereas Rs 75.131 billion was mark up.
Chief Financial Officers (CFOs) of USC and NFML challenged some of the claims of TCP presented by its Chairman Rafeo Bashir Shah, especially mark up being claimed without any formal agreement, rate of bags, and cumulated mark up of short-term loans.
The representative of Finance Division, Dr Imran Ullah Khan refuted some of the claims of NFML and USC, saying that the concerned officials are not lying.
The National Assembly panel suggested that Finance Division should allocate funds for undisputed amount as TSG so that TCP should retire its loans as Rs 1 billion mark up per month is being added to the total amount, which ultimately will be passed on to the masses.
However, the representative of Finance Division expressed an inability to support the proposal of TSG, saying that this is not feasible due to financial constraints, and suggested that the concerned Organisations should bring their proposals to the Priority Committee which is working out financial requirements for fiscal year 2023-24.
He further accused NFML of not providing documentary record of Rs 12.081 billion for the last 18 months. The amount of mark up on this amount has reached Rs 25.768 billion, totalling Rs 37.848 billion. He; however, supported viewpoint of NFML with respect to TCP’s claim of urea price - NFML arguing that it would pay the rate fixed by the government not being claimed by TCP.
The panel was surprised to see that TCP has claimed mark up of Rs 29.310 billion on principal amount of Rs 69.988 billion.
Chairman TCP; however, clarified that he has no issue with PASSCO as the latter is making payments as per the agreed schedule.
After hearing the viewpoints of stakeholders on amount of receivables and payables, the panel gave two weeks’ time to Finance Division for a meeting to reconcile the figures and payment roadmap. The penal also directed that the Secretaries of concerned Ministries and Managing Directors of relevant Organisation must ensure their presence in the next meeting so that a viable solution of TCP’s long outstanding issue of receivables can be formulated.
Copyright Business Recorder, 2023
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