Gas sector 10-member body formed on circular debt settlement

ISLAMABAD: The Finance Division constituted a 10-member committee on circular debt settlement of the gas sector on Wednesday with a timeline to submit report within 10 days after holding day-to-day meetings.

Sources said that the gas sector circular debt has increased to Rs1,549 billion and the number was shared with the finance minister Ishaq Dar during a meeting couple of days ago.

According to the notification, the minister for finance has notified a 10-member Committee to be convened by Ashfaq Tola.

The members of committee included Secretary, Additional Secretary (Petroleum Division), Secretary, Additional Secretary (Power Division), Additional Secretary Corporate Finance (CF) Finance Division, Member Secretary, Commissioner SECP Abdul Rehman Warriach, Chief Financial Officers of Pakistan Development Fund (PDF), Oil and Gas Development Limited (OGDCL), Government Holding (Pvt) Limited (GHPL), Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Sui Northern Gas Pipeline Limited (SNGPL), Sui Southern Gas Pipeline Limited (SSGCL), and Central Power Purchase Authority (CPPA-G).

Dar sharpens focus on energy circular debt

Terms of Reference (TORs) included to undertake a detailed mapping of gas sector circular debt stock as of June 30, 2022, segregating principal amount of debt, late payment surcharge (LPS), penalties and LDs among the under-reference public sector entities of petroleum and Power Sectors; to work out a comprehensive circular debt settlement plan through cash/ non-cash release adjustments; and to identify legal and procedural requirements to implement of CD settlement plan.

The committee may co-opt any other member and Finance Division will provide Secretariat support to the Committee.

The committee will hold day to day meetings and submit its recommendations within 10 days.

Copyright Business Recorder, 2022