ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved a Technical Supplementary Grant (TSG) of Rs 1.238 billion for the fulfillment of GoP’s commitment to fund Balochistan Mineral Resources Limited’s (BMRL’s) obligatory contribution in the Reko Diq project for FY 2022-23.

Last week, Petroleum Division briefed the forum about the case as stated in the summary; it was stated that the project feasibility study had been initiated as per stipulated work plan and some of the Project activities had been accelerated by the Project Company/ RDMC to ensure that the production start-up remains on target.

The annual estimated schedule of payments had; therefore, been revised by the Project Company, keeping the overall capping of Project funding intact/ unchanged. The RDMC had raised calls for payment of $ 7.800 million ($ 2.000 million to be remitted in Pak Rupees) on account of the subject GoB SPV/ BMRL’s obligatory contribution in the Project Capital Commitment for the CFY 2022-23.

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The supplementary grant amounting to Rs 1.00 billion, earlier approved, would partly meet the subject requirement to the extent of $ 3.485 million ($ 1.00 = Rs286.8394 for June 8, 2023).

Considering the PKR-USD exchange, funds amounting to Rs.1.238 billion were essentially required to clear the remaining demand to the sum of $ 4.314 million (including $ 2.00 million portion to be paid in Pak Rupees) for the CFY 2022-23. No surplus/ saving was available in the Petroleum Division’s budget grant for CFY 2022-23 to cater for this requirement.

Petroleum Division requested the ECC for consideration of Technical Supplementary Grant to the sum of Rs.1.238 billion subject to adjustment as per currency exchange rate in the Demand of Petroleum Division for fulfilment of GoP’s commitment to fund the GoB SPV/ BMRL’s obligatory contribution in the Project Capital Commitment during CFY 2022-23.

The Finance Division had endorsed the proposal for provision of Technical Supplementary Grant amounting to Rs.1.238 billion against the Petroleum Division’s demand for fulfilment of GoP’s commitment to fund Balochistan Mineral Resources Limited’s obligatory contribution in the Reko- Diq Project for FY 2022-23.

Copyright Business Recorder, 2023