The total liabilities profile of the Trading Corporation of Pakistan (TCP) (Pvt.) Limited stands at Rs. 127.45 billion as of September 30th, 2022.
According to documents seen by ProPakistani, the revolving credit of subsidies on food items and urea remains in the red zone as debtors owe billions in principal and markup amounts to the TCP.
TCP’s principal liabilities are Rs. 45.72 billion while the markup (interest) stands at Rs. 81.72 billion, as the document said. Sources familiar with the situation said the aforesaid arrears were accrued due to non-payment of subsidies on fertilizer, wheat, and sugar by various government departments on time.
The Utility Stores Corporation has liabilities of Rs. 63.48 billion which comprise Rs. 24.33 million and Rs. 39.15 billion in principal and interest payments, respectively.
The National Fertilizers Marketing Limited (NFML) has liabilities of Rs. 35.61 billion translating into Rs. 12.29 billion principal and Rs. 23.32 billion markup proceeds.
The documents further revealed that the Sindh Food Department has to pay dues amounting to Rs. 6.88 billion, meanwhile the Khyber Pakhtunkhwa Food Department owes Rs. 5.72 billion, and Rs. 3.64 billion owed by the Government of Gilgit Baltistan in debt.
The Punjab Food Department has to pay Rs. 1.59 billion in principal debt and a markup fee of Rs. 3.37 billion, with overall liabilities totaling Rs. 4.96 billion.
The Balochistan Food Department owes Rs. 5.1 billion, while the Government of Azad Jammu and Kashmir has to pay outstanding dues of Rs. 1.05 billion which includes Rs. 815 million interest fee and Rs. 231 million principal payments.
Sources said the International Monetary Fund (IMF) has grave misgivings about Pakistan’s revolving loan facility for fertilizer and food subsidies and wants them eliminated, along with revolving loans for electricity and gas.
While the government is taking steps to limit subsidies to those who deserve them, the IMF has demanded the government end subsidies on wheat, sugar, and fertilizers altogether. The lender wants a reversal or for the government to compensate for the losses of recently introduced measures (agricultural subsidies, exporter subsidies, and power sector delays) with new tax measures.
Serial defaulters. The government has always been defaulting.