ECC approves Rs30bn grant for PSO

ISLAMABAD: In order to save Pakistan State Oil (PSO) from default, the Economic Coordination Committee (ECC) of the cabinet approved the clearance of the “outstanding payments accumulated during the tenure of the previous government and approved an amount of Rs30 billion as supplementary grant”.

A statement issued by Finance Division said that the decision was taken in a meeting, chaired by Finance Minister Miftah Ismail, at its office.

The Finance Division said the “Ministry of Energy (Petroleum Division) had submitted a summary on SOS call for funds for Pakistan State Oil Company Ltd. (PSOCL) to meet international contractual payments during 1-14 August, 2022.”

“For the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of previous government and approved an amount of Rs 30 billion as supplementary grant for PSO receivables”.

The ECC also directed Petroleum Division to work out options in consultation with OGRA for setting up petroleum product prices within a week.

“The ECC also directed Finance Division and FBR to submit a proposal for generation of Rs30 billion through taxes, within a week,” said the statement.