Govt entities owe billions of rupees: TCP receivables stand at Rs308bn

ISLAMABAD: The Trading Corporation of Pakistan’s receivables stock stood at Rs 308 billion as of February 28, 2025, due to outstanding payments from various government entities, including the Pakistan Navy.

As a result, the TCP is incurring daily payments in millions of rupees to banks, sources in the Commerce Ministry told Business Recorder.

Of the total receivables, the Utility Stores Corporation (USC) owed Rs 102.262 billion, and the National Fertilizer Marketing Limited (NFML) owed Rs 122.657 billion.

Various depts/organisations: TCP receivables stand at Rs253.8bn

Other major receivables include the Ministry of National Food Security and Research (cotton subsidy) at Rs 2.649 billion, PASSCO at Rs 6.009 billion, Sindh Food Department at Rs 8.910 billion, Punjab Food Department at Rs 16.354 billion, KPK Food Department at Rs 12.308 billion, Balochistan Food Department at Rs 8.834 billion, Government of Gilgit Baltistan at Rs 6.251 billion, Government of AJ&K at Rs 2.1 billion, DGP Army at Rs 1.584 billion, Pakistan Navy at Rs 216 million, Ministry of Industries and Production (on sugar account) at Rs 17.674 billion, and Ministry of Finance (rice) at Rs 194 million.

According to sources, of the total receivables, the principal amount stood at Rs 93.693 billion, while the markup amounted to Rs 214.396 billion as of February 28, 2025.

The sources further stated that the commitment from recipient agencies to pay the principal amount along with markup, in the form of written agreements and federal government assurance as per the ECC decision, amounted to Rs 16.831 billion.

Partial payments, accepted by recipient agencies through reconciled and signed minutes or letters, or backed by the ECC decisions, amounted to Rs 72.296 billion.

Outstanding amounts from the federal government, including markup on delayed payments, receivables from the Ministry of Industries and Production for sugar payments as per the Secretaries Committees/ECC decisions, and the remaining disputed principal amounts against recipient agencies, stood at Rs 218.962 billion.

The total value of TCP’s properties, assessed by M/s Joseph Lobo (Pvt) Limited, is Rs 86.280 billion. This includes Korangi Godown (Rs 36.760 billion), Landhi Godown (Rs 7.016 billion), Pipri Godown (Rs 41.089 billion), TCP House (Rs 155 billion), and FTC building (Rs 1.259 billion). TCP’s rental income from its properties for FY 2023-24 was approximately Rs 500 million, with a rental yield of 0.6%.

Sources indicated that the Commerce Ministry and TCP have raised the issue of receivables at various forums, including the Economic Coordination Committee (ECC) of the Cabinet, in an attempt to settle the matter promptly and alleviate the markup on loans raised from banks. However, all efforts in this regard have so far been unsuccessful.

Copyright Business Recorder, 2025