TCP Faces Rs308 Billion in Outstanding Receivables Amid Financial Strain

As of February 28, 2025, the Trading Corporation of Pakistan (TCP) is facing an alarming Rs308 billion in outstanding receivables, primarily due to delayed payments from several government agencies, including the Pakistan Navy, according to a report by BR.

Among the largest defaulters, the Utility Stores Corporation (USC) owes Rs102.26 billion, while National Fertilizer Marketing Limited (NFML) has unpaid dues of Rs122.65 billion.

Other significant pending payments include Rs17.67 billion from the Ministry of Industries and Production (for sugar-related payments), Rs16.35 billion from Punjab’s Food Department, Rs12.3 billion from Khyber Pakhtunkhwa’s Food Department, Rs8.91 billion from Sindh’s Food Department, and Rs8.83 billion from Balochistan’s Food Department.

Additional receivables consist of Rs6 billion from PASSCO, Rs6.25 billion from the Government of Gilgit-Baltistan, Rs2.1 billion from the Government of Azad Jammu and Kashmir (AJ&K), Rs2.64 billion for cotton subsidies under the Ministry of National Food Security and Research, Rs1.58 billion from the Directorate General Procurement (DGP) Army, and Rs216 million from the Pakistan Navy. Additionally, the Ministry of Finance owes Rs194 million for rice payments.

Of the total Rs308 billion in outstanding dues, the principal amount is Rs93.69 billion, while the markup on delayed payments has escalated to Rs214.39 billion. According to sources, recipient agencies have committed to repaying Rs16.83 billion through formal agreements and federal government assurances under decisions by the Economic Coordination Committee (ECC). Furthermore, Rs72.29 billion in partial payments have been accepted by the agencies, either through reconciled documents or ECC-backed commitments.

The accumulating backlog has forced the TCP to make daily bank payments, totaling millions of rupees, which has further worsened its financial condition.

The federal government’s outstanding liabilities, including markup on delayed payments, disputed principal amounts, and receivables linked to sugar payments under ECC directives, now total Rs218.96 billion.

Despite the TCP’s assets, which have been valued at Rs86.28 billion by M/s Joseph Lobo (Pvt) Limited, including Korangi Godown valued at Rs36.76 billion, Pipri Godown at Rs41.08 billion, Landhi Godown at Rs7.01 billion, TCP House at Rs155 million, and the FTC building at Rs1.25 billion, the rental income for FY 2023-24 was a modest Rs500 million, yielding a low return of just 0.6%.

Despite multiple efforts, including raising concerns at various forums like the Economic Coordination Committee (ECC), the Commerce Ministry and TCP continue to seek solutions to ease the corporation’s financial pressures and ensure smoother operations.