Agriculture Reference
In-Depth Information
TABLE 4.8
Profits and taxes paid by Pakistan Agricultural Storage and Services
Corporation, 1984/85 to 2001/02 (Rs thousands)
Year
(April-March)
Profits
Taxes
Dividend
1984/85
82,573
—
—
1985/86
50,249
—
—
1986/87
126,833
—
—
1987/88
53,669
—
—
1988/89
111,673
—
—
1989/90
262,124
13,000
6,000
1990/91
180,634
94,672
6,000
1991/92
101,006
45,203
6,000
1992/93
-71,805
17,502
—
1993/94
110,714
23,741
6,000
1994/95
161,593
72,112
6,000
1995/96
161,818
59,411
3,000
1996/97
49,514
12,712
3,000
1997/98
205,988
72,734
6,000
1998/99
61,047
36,400
6,000
1999/2000
-128,901
19,720
—
2000/01
-1,177,216
12,712
—
2001/02
262,111
29,000
—
Total
603,624
508,919
48,000
SOURCE
: Data from Pakistan Agricultural Storage and Services Corporation through the Ministry
of Food, Agriculture and Livestock.
NOTE
: — indicates not available.
A perusal of Table 4.8 indicates that PASSCO has been, by and large, a
profitable enterprise. During the period under reference, PASSCO has earned
profit in 15 years and incurred losses in 3 years. Its net profits before taxes have
totaled Rs 603.6 million. It has paid taxes of about Rs 508.9 million and also
paid Rs 48 million as dividends to its shareholders. It has also accumulated re-
serves of Rs 533 million from its profits and maintained its credit worthiness
by repaying its loans to the banks.
Its total losses of Rs 1,378 million (in 3 years) during the past 18 years
are also quite high. But these losses are partly attributable to high financial and
storage costs (including storage losses) incurred in carrying over large stocks
of wheat. Moreover, PASSCO also maintains strategic reserves of wheat on be-
half of the federal government. Storage losses of agricultural products are in-
escapable. In such operations there are increased chances of losses, especially
in good crop years when prices in the domestic market are not adequate to cover
various expenses. In principle, such losses, which are incurred in implement-
