The interest on loans taken by 14 government-owned entities has surged by Rs. 211 billion, bringing the total outstanding amount to Rs. 305 billion, according to official documents.
These institutions are indebted to the Trading Corporation of Pakistan (TCP) which is itself facing significant financial strain.
Utility Stores Corporation (USC) owes TCP Rs. 103.31 billion, with the actual loan amount standing at Rs. 24.23 billion. However, interest charges have inflated this debt by Rs. 76.98 billion.
The National Fertilizer Corporation’s Rs. 53.81 billion loan has accrued an additional Rs. 67.7 billion in interest, raising its total liability to Rs. 121.51 billion.
The Sindh Food Department, with an initial loan of just Rs. 540 million, now faces Rs. 8.28 billion in interest.
PASCO’s Rs. 1.15 billion loan has accumulated Rs. 4.88 billion in interest, while the KP Food Department has seen its Rs. 2.52 billion loan swell by Rs. 4.12 billion. Other loans held by the KP Food Department, totaling Rs. 4.79 billion and Rs. 11.51 billion, have also seen sharp interest hikes.
Azad Kashmir’s government has also defaulted on Rs. 2.07 billion owed to TCP. A relatively small loan of Rs. 230 million has grown significantly due to accumulated interest, now standing at Rs. 1.85 billion.
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