By Abdul Ghani

Provincial governments owe more than Rs57 billion to the Trading Corporation of Pakistan (TCP) due to unresolved disputes over wheat-related costs and urea subsidy sharing, according to an official receivables statement available with Wealth Pakistan. The document shows that as of January 2026, TCP’s total receivables from provincial governments stand at Rs97.08 billion, of which Rs39.45 billion has been agreed, while Rs57.63 billion remains disputed.

Punjab is the largest debtor with total claims amounting to Rs49.84 billion. However, the province has accepted Rs35.64 billion, leaving Rs14.20 billion under dispute. According to the document, the Punjab Cabinet, in its 18th meeting held on October 22, 2024, decided to adjust the province’s urea subsidy share against the outstanding dues of the Punjab government from the federal government, resulting in a relatively higher acceptance compared to other provinces.

In contrast, the government of Sindh has rejected the entire claim of Rs19.60 billion, disputing wheat storage charges and refusing to pay its 50% share of the imported urea subsidy, despite decisions taken by the Economic Coordination Committee (ECC). The remarks section of the document indicates that Sindh has consistently disagreed with both storage-related costs and subsidy obligations.

The government of Khyber Pakhtunkhwa has accepted only Rs2.11 billion out of a total claim of Rs16.39 billion, leaving Rs14.28 billion disputed. Similarly, Balochistan has acknowledged merely Rs1.70 billion against a claim of Rs11.25 billion, with Rs9.56 billion still unresolved. Both provinces have objected to incidental, transportation, and storage charges related to wheat operations and have also declined to pay their 50% share of the urea subsidy, including markup.

The document clarifies that the disputed amounts include markup charges as well as half of the urea subsidy, except in the case of Punjab, which has shown relatively greater compliance following cabinet approval. Officials familiar with the matter said that mounting receivables are placing significant financial pressure on the TCP, affecting its liquidity position and ability to manage procurement and market-stabilisation operations effectively.

Analysts believe the situation highlights persistent weaknesses in federal-provincial coordination over subsidy implementation and cost-sharing mechanisms. Without uniform enforcement of ECC decisions, resistance from provinces is likely to continue, potentially complicating federal fiscal management. The issue is expected to be raised in upcoming coordination meetings between the federal and provincial governments, though no timeline for resolution has yet been announced

Credit: INP-WealthPk