FCC suspends SHC order on petroleum subsidy payment in company case

The Federal Constitutional Court (FCC)  has suspended a High Court order directing the payment of billions of rupees in subsidy to a private petroleum company within one week, in a case related to the ongoing petroleum crisis and subsidies granted to companies.

The court accepted the federal government’s appeal for hearing and issued notices to all parties involved. It also sought the complete case record from the High Court.

Earlier, the Sindh High Court had ordered the payment of subsidy amounts to a petroleum company within a week. In a separate matter, the High Court had also restrained the Federal Investigation Agency (FIA) from proceeding with its decision.

The federal government had earlier decided to provide subsidies to petroleum companies based on price differentials. A private company had claimed nearly Rs14 billion in subsidies from the government in connection with losses incurred during the petroleum crisis.

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Authorities had instructed the FIA to investigate petroleum sales in order to verify the matter. The case was heard by a two-member bench comprising Justice Aminuddin Khan and Justice Ali Baqar Najafi.

Further proceedings in the Federal Constitutional Court have been adjourned indefinitely.