STAFF REPORT IBD: The Trading Corporation of Pakistan (TCP) asked the federal government to provide Rs 25 billion on an immediate basis for the import of urea.

It was also informed that TCP has sought Rs 25 billion for overall import operation of 0.3 million tons of urea. Out of this amount approximately Rs 12-13 billion will be the commodity cost and the remaining amount will be utilized for payment of taxes, duties and other expenses viz urea import.

Presently, TCP enjoys a strengthened financial position, however, it may face some shortage of funds to import urea as its over Rs 50 billion of urea subsidy payment is pending with the federal government.

The TCP has recently awarded contracts for import of urea, but it does not have sufficient funds to open the letters of credit LCs for import of the commodity, sources have disclosed to this scribe.

According to them, TCP has finalised deals at $399.38 per tons for import of 0.3 million tons of urea and it requires huge funds for opening of LCs.

“Although, lower international prices have supported the state-run grain trader as it has successfully finalised a contact at even lowest price of this calendar year, however, still this import needs billions of rupees amount for import process,” the sources maintained.

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