The National Assembly Sub-Committee on Commerce on Monday took notice of the non-payment of dues of Rs. 247 billion by provinces and various ministries to the Trading Corporation of Pakistan (TCP).
Convener of the committee Rana Iradat Sharif Khan said that the issue of non-payment has been pending for the past 26 years and blamed bureaucracy and other institutions for not doing anything to mitigate the fallout.
The committee summoned the Managing Director of Utility Stores Corporation (USC) and the National Fertilizer Marketing Limited (NFML) to the next meeting for urgent facilitation on the matter.
The committee was informed that the Trading Corporation of Pakistan (TCP) is facing bankruptcy due to the non-payment of dues worth billions of rupees by provinces and various ministries. These amounts are the responsibility of all four provinces, including Azad Jammu and Kashmir (AJK), as well as the Directorate General of the Pakistan Army, Pakistan Navy, USC, and NFML.
TCP officials confirmed that letters of credit (LC) for urea were opened and imported at the request of the cabinet, but the provinces do not give money, and they do not give the subsidy amount which later aggravates the financial burden.
To resolve the matter, the committee chairman directed to form a committee comprising the secretaries of the relevant ministries and asked them to submit a report within two weeks. He said that an inter-ministerial committee should be formed to give a time frame for the payment.
The committee members also noted that the TCP and USC should come to an agreement so that such situations do not arise in the future.