Islamabad, Feb 4: According to official records, the financial burden of interest payments on loans taken by 14 state-owned entities has soared by Rs. 211 billion, pushing their total outstanding liabilities to Rs. 305 billion. This rising debt has placed significant strain on both these institutions and the Trading Corporation of Pakistan (TCP), which serves as the primary lender and is itself facing a worsening financial situation.
Among the most indebted entities, the Utility Stores Corporation (USC) has seen its obligations balloon to Rs. 103.31 billion. Although the original loan amounted to Rs. 24.23 billion, accumulated interest charges have pushed the total debt up by Rs. 76.98 billion. Similarly, the National Fertilizer Corporation’s loan of Rs. 53.81 billion has amassed an additional Rs. 67.7 billion in interest, bringing its total liability to a staggering Rs. 121.51 billion.
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Provincial food departments are also facing a mounting debt crisis. The Sindh Food Department, which initially borrowed a mere Rs. 540 million, now grapples with Rs. 8.28 billion in total dues due to accumulated interest. The Pakistan Agricultural Storage and Services Corporation (PASCO) also finds itself in a similar predicament, with a Rs. 1.15 billion loan swelling to Rs. 6.03 billion after incurring Rs. 4.88 billion in interest.
Khyber Pakhtunkhwa’s Food Department has multiple outstanding loans, including one of Rs. 2.52 billion that has accrued an additional Rs. 4.12 billion in interest. Two other loans of Rs. 4.79 billion and Rs. 11.51 billion have also witnessed significant interest surges.
The government of Azad Kashmir is another major defaulter, with an unpaid loan of Rs. 2.07 billion owed to TCP. A relatively modest borrowing of Rs. 230 million has now ballooned to Rs. 1.85 billion due to interest accumulation, adding to the growing financial burden.
With such steep interest hikes, the worsening debt situation of these entities raises serious concerns about their financial stability and the broader economic impact. The escalating liabilities not only put pressure on the organizations involved but also pose a challenge to TCP, which continues to struggle under the weight of mounting unpaid dues.
