Karachi, July 21, 2025: A recent subcommittee report revealed mounting financial liabilities (debt) linked to Trading Corporation of Pakistan (TCP), totally Rs319 billion.
The bulk of the debt is owed by the government-controlled entities such as the Utility Stores and the National Fertiliser Marketing Limited (NFML). This raises questions about the effectiveness of inter-agency financial management.
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Liability Breakdown
- Total liability: Rs319 billion
- Principal amount: Rs88 billion
- Accrued interest: Rs330 billion
- Recoverable from Utility Stores and NFML: Rs230 billion
Scheduled Inflows
- Current fiscal year: Rs15 billion expected
- Next financial year: Rs30 billion expected
The mounting debt has been linked to the TCP’s difficulty in recovering dues from provincial government points to broader institutional challenges in ensuring timely payments within the country’s public sector ecosystem.
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Delays have resulted in substantial interest accumulation, which now exceeds the principal.
Key Recommendations:
| Recommendation | Description | Expected Benefit |
| Strengthen Inter-Provincial Coordination | Create a federal-provincial committee for dues recovery oversight and dispute resolution. | Faster resolution; better accountability |
| Integrate TCP Dues into Budgets | If the provinces formally included TCP dues in annual budgets, this might lead to paying off the debt as a priority | This might help reduces payment delays |
| Regular Audit and Public Disclosure | Conduct independent audits and publish progress reports on dues and recovery status. | Improves transparency |
| Link Federal Grants to Payment Compliance | Tie federal transfers and development funds to timely clearance of TCP liabilities. | This might incentivises earlier payment |
| Digital Payment and Monitoring Systems | Implement centralised automated systems | Real-time tracking, will reduce errors |
| Public Awareness Messages | Educate stakeholders and engage media on importance of timely payments. | Builds accountability |
