Print Print edition: 2026-08-17

Rs342.947bn TCP dues: NA to summon Finance Secretary, SBP governor

Published August 17, 2026 Updated August 17, 2026 04:46am

4 min

By Mushtaq Ghumman

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ISLAMABAD: The National Assembly Standing Committee on Commerce has decided to summon the Finance Secretary and Governor State Bank of Pakistan (SBP) over the failure to resolve the issue of Rs342.947 billion payable to the Trading Corporation of Pakistan (TCP), including accumulated bank markup of Rs265.719 billion.

The decision was taken on the request of Commerce Secretary Jawad Paul and TCP Chairman Rafeo Bashir Shah, who sought the committee’s support in resolving the long-standing issue.

According to official documents, the total outstanding amount payable to TCP by various recipient agencies stood at Rs342.947 billion as of July 31, 2026, of which Rs265.719 billion constituted accumulated markup.

The details of TCP’s receivables as on July 31, 2026 are as follows:(i) USC-Rs 121.138 billion( principal Rs 24.334 billion/ mark up Rs 96.804 billion;(ii) NFML total amount- Rs 76.331 billion( principal Rs 12.487 billion/ markup Rs 63.845 billion) ;(iii) Ministry of National Food Security and Research ( cotton subsidy) total -Rs 3.135 billion( principle Rs 621 million/ markup Rs 2.513 billion) ;(iv) PASSCO- Rs 6.996 billion( principal Rs 742 million/ mark up Rs 6.253 billion ;(v) Sindh Food Department- Rs 20.748 billion( principle Rs 6.163 billion/ markup Rs 14.586 billion ;(vi) Punjab Food Department -Rs 47.601 billion( principle Rs 19.915 billion/ markup Rs 27.687 billion;(vii) KPK Food Department- Rs 17.357 billion( principal Rs 3.949 billion/ markup Rs 13.408 billion) ;(viii) Balochistan Food Department -Rs 11.919 billion( principle Rs 2.569 billion/ markup Rs 9.350 billion) ;( ix) Government of Gilgit Baltistan- Rs 7.405 billion( principal Rs 1.284 billion/ markup Rs 6.121 billion ;(x) Government of AJ&K- Rs 2.332 billion( principal Rs 65 million / markup Rs 2.266 billion ;(xi) DGP Army- Rs 1.877 billion (principal Rs 255 million/ markup Rs 2.266 billion ; (xii) Pakistan Navy- Rs 255 million (principal Rs 43 million/ markup Rs 212 million) ; (xiii) MoI&P( formally MINFAL on sugar account -Rs 20.455 billion (principal Rs 2.403 billion/ markup Rs 18.052 billion) ;(xiv) Ministry of Finance markup Rs 230 million; and (xv) MoI&P (sugar subsidy -Punjab) - Rs 5.168 billion( principle Rs 2.397 billion/ markup Rs 2.771 billion.

The documents further reveal that the Ministry of Finance had previously proposed an audit of TCP’s bank loans obtained for its operations, on the directives of the federal government. The proposed audit was intended to determine which banks had extended loans to TCP at different times and what interest rates were prevailing at the time. However, TCP subsequently succeeded in resolving the issue with the Finance Ministry without an audit.

During a recent meeting of the National Assembly Standing Committee on Commerce, the TCP chairman apprised the committee that the organisation was actively pursuing reconciliation with the concerned agencies and their respective ministries.

Accordingly, a draft summary was submitted to the Ministry of Commerce on November 21, 2023, for placement before the Economic Coordination Committee (ECC) and the federal cabinet for settlement of all outstanding dues, including markup, which constitutes the bulk of TCP’s liabilities.

The summary proposed clearing the markup either through a federal budgetary allocation or through a mechanism similar to that adopted in 2011, when Pakistan Investment Bonds (PIBs) were issued to banks to settle TCP’s entire liabilities.

Furthermore, the Sub-Committee of the National Assembly Standing Committee on Commerce, in its meeting held on March 7, 2025, recommended that the Ministry of Finance hold consultations with the concerned banks regarding the markup component, with a view to capping the accumulated markup or reaching an amicable settlement.

TCP also informed the government about its interaction with the SBP. According to the documents, the central bank communicated to TCP that its concern related to receivables from various government departments and agencies, and therefore TCP did not appear to have an issue with banks.

The SBP maintained that neither the central bank nor commercial banks had a role in implementing the decisions of the Standing Committee and, from a banking perspective, the matter could be treated as closed.

TCP, however, maintained that despite repeated requests and references to the directives of the National Assembly Standing Committee on Commerce, there had been no significant change in the status of receivables from the concerned departments and agencies in terms of reconciliation and clearance of their liabilities.

The documents also state that as of April 30, 2026, Rs135.270 billion was outstanding against NFML on account of imported urea. During FY2025-26, Rs15 billion was allocated for the outstanding subsidy on imported urea, which was received in two equal tranches of Rs7.5 billion each on May 18 and June 30, 2026.

As of July 31, 2026, the total amount payable to TCP by various recipient agencies stood at Rs342.947 billion, of which Rs265.719 billion was accumulated markup.

The Standing Committee on Commerce is now expected to question the SBP Governor as to why the central bank has not facilitated TCP in reducing the markup burden or, at minimum, freezing the accumulated markup at its current level.

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