The National Assembly Standing Committee on Commerce has decided to summon the Finance Secretary and Governor State Bank of Pakistan (SBP) to seek an explanation over the continued delay in resolving Rs342.947 billion in outstanding receivables owed to the Trading Corporation of Pakistan (TCP). The amount includes Rs265.719 billion in accumulated bank markup, which has become the largest component of the organisation’s outstanding liabilities.
The decision was taken following a request from Commerce Secretary Jawad Paul and TCP Chairman Rafeo Bashir Shah, who sought the committee’s intervention to address the long-running issue. According to official documents, the total amount payable to TCP by various recipient agencies stood at Rs342.947 billion as of July 31, 2026. Of the total, the principal component was substantially lower than the accumulated markup, highlighting the impact of financing costs over an extended period.
The receivables are spread across a number of government departments, agencies and public sector entities. Utility Stores Corporation (USC) accounted for Rs121.138 billion, comprising Rs24.334 billion in principal and Rs96.804 billion in markup. The National Fertilizer Marketing Limited (NFML) owed Rs76.331 billion, including Rs12.487 billion in principal and Rs63.845 billion in markup.
The Ministry of National Food Security and Research owed Rs3.135 billion related to the cotton subsidy, consisting of Rs621 million in principal and Rs2.513 billion in markup. PASSCO had outstanding dues of Rs6.996 billion, including Rs742 million in principal and Rs6.253 billion in markup. The Sindh Food Department owed Rs20.748 billion, comprising Rs6.163 billion in principal and Rs14.586 billion in markup.
Punjab Food Department receivables stood at Rs47.601 billion, with Rs19.915 billion in principal and Rs27.687 billion in markup. Khyber Pakhtunkhwa Food Department owed Rs17.357 billion, including Rs3.949 billion in principal and Rs13.408 billion in markup. Balochistan Food Department had outstanding liabilities of Rs11.919 billion, consisting of Rs2.569 billion in principal and Rs9.350 billion in markup.
The Government of Gilgit Baltistan owed Rs7.405 billion, with Rs1.284 billion in principal and Rs6.121 billion in markup, while the Government of Azad Jammu and Kashmir had outstanding dues of Rs2.332 billion, including Rs65 million in principal and Rs2.266 billion in markup. The documents also listed Rs1.877 billion payable by DGP Army, Rs255 million by Pakistan Navy, and Rs20.455 billion by the Ministry of Industries and Production, formerly associated with the Ministry of National Food, Agriculture and Livestock, on account of sugar.
The Ministry of Finance had an outstanding markup amount of Rs230 million, while the Ministry of Industries and Production also had Rs5.168 billion outstanding under the Punjab sugar subsidy, comprising Rs2.397 billion in principal and Rs2.771 billion in markup.
The documents further showed that the Ministry of Finance had previously proposed an audit of bank loans obtained by TCP for its operations. The proposed audit was intended to identify the banks that provided financing to TCP at different periods and determine the interest rates applicable at the time. However, TCP subsequently resolved the matter with the Finance Ministry without proceeding with the proposed audit.
During a recent meeting of the National Assembly Standing Committee on Commerce, TCP Chairman Rafeo Bashir Shah informed members that the organisation was continuing efforts to reconcile its receivables with the relevant agencies and ministries. TCP had submitted a draft summary to the Ministry of Commerce on November 21, 2023, seeking its placement before the Economic Coordination Committee and federal cabinet for settlement of outstanding dues, including the markup component.
The proposed settlement mechanism included clearing the accumulated markup through a federal budgetary allocation. Another option was a mechanism similar to one used in 2011, when Pakistan Investment Bonds were issued to banks to settle TCP’s liabilities. The proposal was aimed at addressing the financial burden created by the accumulation of markup over the years.
The issue was also examined by a Sub-Committee of the National Assembly Standing Committee on Commerce in its meeting held on March 7, 2025. The sub-committee recommended that the Ministry of Finance consult the concerned banks regarding the markup component. It suggested that discussions should focus on either capping the accumulated markup or reaching an amicable settlement to prevent the liability from continuing to increase.
TCP also informed the government about its interaction with the State Bank of Pakistan. According to documents presented before the committee, SBP communicated that its concern related to receivables owed to TCP by various government departments and agencies. The central bank maintained that TCP did not appear to have an issue with commercial banks from its perspective.
SBP further stated that neither the central bank nor commercial banks had a role in implementing decisions of the National Assembly Standing Committee and, from a banking perspective, the matter could be treated as closed. TCP, however, maintained that despite repeated requests and references to parliamentary committee directives, there had been no significant improvement in the reconciliation or clearance of liabilities owed by the concerned government departments and agencies.
The documents also highlighted the outstanding amount against NFML for imported urea. As of April 30, 2026, Rs135.270 billion was outstanding against NFML on account of imported urea. During FY2025-26, Rs15 billion was allocated for the outstanding subsidy on imported urea, which was released in two equal tranches of Rs7.5 billion on May 18 and June 30, 2026.
Despite these payments, TCP’s total receivables remained at Rs342.947 billion as of July 31, 2026, with accumulated markup accounting for Rs265.719 billion. The large markup component has become a central concern for parliamentary members and TCP, as the continuing cost of financing has substantially increased the overall liability.
The Standing Committee on Commerce is now expected to question the Finance Secretary and SBP Governor regarding the unresolved receivables and the growing markup burden. In particular, the committee is expected to seek an explanation from the SBP Governor on why the central bank has not facilitated measures to reduce the markup burden or, at minimum, freeze the accumulated markup at its existing level. The hearing is expected to focus on possible mechanisms for reconciling and settling TCP’s long-standing dues while preventing further growth in the financial burden.
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