TCP seeks Rs305.4 billion financing to run commodity operations

KARACHI: The Trading Corporation of Pakistan (TCP) has sought Rs305.4 billion commodity operation financing for the import of sugar, wheat, urea, cotton and rice during the first quarter of 2022, an official said.

“[The] TCP had already obtained approval from the Ministry of Finance for the planned commodity operation financing, and [the] banks would provide financing against [the] government of Pakistan guarantees,” the official said.

The primary mandated functions of the TCP have essentially been that of a large trading house in the public sector with a primary focus on the import of essential items to stabilise the prices in the local market and to import bulk industrial raw materials to achieve economies of scale and to introduce/promote the trade of non-traditional items with Socialist countries.

Sources said all the banks under the licensing of the State Bank of Pakistan (SBP) could participate at the lending rates of three-month Kibor as of December 31, 2021.

The state-run TCP is already conducting a projection study to determine the country’s actual need for various commodities in the next five years. The research study will focus on commodities demand in the country to 2025 for the purpose of getting the best possible estimation.