AGL 40.00 Decreased By ▼ -0.02 (-0.05%)
AIRLINK 190.50 Increased By ▲ 12.43 (6.98%)
BOP 10.15 Increased By ▲ 0.19 (1.91%)
CNERGY 7.07 Increased By ▲ 0.13 (1.87%)
DCL 10.18 Increased By ▲ 0.09 (0.89%)
DFML 41.67 Increased By ▲ 0.10 (0.24%)
DGKC 107.93 Increased By ▲ 1.04 (0.97%)
FCCL 39.24 Increased By ▲ 0.21 (0.54%)
FFBL 81.50 Decreased By ▼ -0.39 (-0.48%)
FFL 14.76 Increased By ▲ 1.06 (7.74%)
HUBC 119.85 Increased By ▲ 0.60 (0.5%)
HUMNL 14.03 Increased By ▲ 0.03 (0.21%)
KEL 6.37 Increased By ▲ 0.46 (7.78%)
KOSM 8.05 Decreased By ▼ -0.01 (-0.12%)
MLCF 49.21 Increased By ▲ 1.11 (2.31%)
NBP 73.50 Increased By ▲ 0.67 (0.92%)
OGDC 200.90 Increased By ▲ 7.14 (3.68%)
PAEL 33.30 Increased By ▲ 1.15 (3.58%)
PIBTL 8.08 Increased By ▲ 0.06 (0.75%)
PPL 182.95 Increased By ▲ 8.88 (5.1%)
PRL 33.30 Increased By ▲ 0.70 (2.15%)
PTC 27.40 Increased By ▲ 2.13 (8.43%)
SEARL 120.50 Decreased By ▼ -4.46 (-3.57%)
TELE 9.70 Increased By ▲ 0.28 (2.97%)
TOMCL 35.45 Increased By ▲ 0.06 (0.17%)
TPLP 12.35 Increased By ▲ 0.73 (6.28%)
TREET 20.26 Increased By ▲ 1.84 (9.99%)
TRG 60.75 Increased By ▲ 0.26 (0.43%)
UNITY 37.90 Decreased By ▼ -0.31 (-0.81%)
WTL 1.66 No Change ▼ 0.00 (0%)
BR100 11,730 Increased By 207 (1.8%)
BR30 36,340 Increased By 790.4 (2.22%)
KSE100 110,500 Increased By 1603.2 (1.47%)
KSE30 34,316 Increased By 507.3 (1.5%)
Markets

Dar directs committee to finalise action plan for settlement of circular debt

  • Issue of circular debt is seen as one key element in reviving IMF programme
Published January 21, 2023

Federal Minister for Finance and Revenue Mohammad Ishaq Dar on Saturday directed the committee, formed on circular debt settlement, to finalise its report and action plan for early settlement of circular debt in the gas sector.

Dar chaired a meeting on reforms in the energy sector at the Finance Division, read a statement released by the Ministry of Finance.

Reforms and Resource Mobilization Commission (RRMC) Chairman Ashfaq Yousuf Tola, also the convenor of the committee, apprised the chair of the quantum of circular debt in the gas sector.

He also informed the chair of the modalities and framework to introduce reforms in the energy sector, which would help offset the burden of circular debt, read the statement.

The meeting discussed viable proposals focused on bringing sustainability to the energy sector to achieve economic growth in the country.

Dar sharpens focus on energy circular debt

The finance minister emphasised the priority of the government to address the issues of the energy sector including circular debt to bring financial sustainability of the sector and economic growth of the country.

Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Ashfaq Yousuf Tola Chairman Reforms and Resource Mobilization Commission (RRMC), Chairman SECP, Controller General of Pakistan, Accountant General of Pakistan and senior officers from Finance and Petroleum Divisions attended the meeting.

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

The members of the committee included the 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).

Terms of Reference (TORs) included undertaking a detailed mapping of gas sector circular debt stock as of June 30, 2022, segregating the 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 issue of circular debt is a key element in reviving the International Monetary Fund (IMF) bailout programme, without which experts believe Pakistan would face further economic difficulties.

Policymakers are currently facing turmoil in Pakistan amid sharp fall in reserves that, at $4.6 billion, are not enough to cover even one month of imports. The disbursement of IMF funds has been delayed on account of Pakistan’s struggle to implement some key prior conditions.

Comments

Comments are closed.

Salim Jan 21, 2023 05:39pm
IMF imposing, not Dar, who is far from accepting ground realities. Dar thinks IMF is ruled by Nawaz Sharif
thumb_up Recommended (0)
Shahid Ali butt Jan 21, 2023 06:43pm
یہاں سب سے بڑا مسلہء ھنڈی اور حوالہ ھےاسکو بندکردو یہ مسلے حل ھو جائے گے
thumb_up Recommended (0)
Retired Jan 21, 2023 07:18pm
No police station pays electricity bill! Most govt offices have millions in arrears of electricity! Senior govt officers get free electricity and fuel. All WAPDA employees (which number in tens of thousands) get free electricity units, which is unused, they give to their relatives and friends! How can anyone in this mayhem do "away" with circular debt? Electricity generation costs hard cash and as long as so many free loaders are on the network, more debt will be accumulate in no time even if current debt is paid off!
thumb_up Recommended (0)
MonDaY Man Jan 21, 2023 08:21pm
@Free Balochistan , hey what about sindu Desh
thumb_up Recommended (0)
TimeToMovveOn Jan 21, 2023 09:53pm
@samir, 1. He's just an intellectual - His intellectual policies have worked in other countries and even India and Bangladesh adopted his policies and they have succeeded. So why not in Pakistan? 2. who always keep bad mouthing pakistan - Actual empirical facts are not bad mouthing. THat is like saying math is biased. 3, doesnt have any real skills in my opinion. - Your opinion don't count infront of an MIT grad. 4, We dont need advice - What do you mean "we" he is part of pakistan, and Pakistan is part of him. 5. on how to run our great nation -- the great nation is not, It is running every week to IMF and begging around the world.
thumb_up Recommended (0)
Truthisbitter813 Jan 21, 2023 09:54pm
Ashfaq Yousaf Tola is an institution all into himself, good on Dar on bringing Mr. Tola in for this always-neglected matter.
thumb_up Recommended (0)
gnay.aly Jan 22, 2023 04:06am
How can a prime witness of MONEY LAUNDERER & him self is an accused of assets beyond means , further A CHARTERED ACCOUNTANT as Fraud Monster I DAR only can plus minus increase decrease figures
thumb_up Recommended (0)