PSO likely to get Rs30bln to reduce circular debt on IMF condition
- By Web Desk -
- Jan 17, 2024
ISLAMABAD: Pakistan State Oil (PSO) is likely to receive Rs30 billion to reduce the circular debt of the energy sector on the International Monetary Fund’s demand, ARY News reported, citing sources.
According to sources within the finance ministry, Rs30 billion will be released to PSO during the ongoing week. Furthermore, Rs5 billion has been released to the Sui Northern Gas Pipeline Limited on account of subsidies, while the remaining Rs25 bln for domestic consumers and fertilizer plants will be released this week.
Meanwhile, the decision to hand over two power plants to the Pakistan State Oil (PSO) will be taken by the caretaker federal government next week, the sources said and added the move is being taken to bring down the circular debt.
They further say the gas sector’s circular debt will be reduced by Rs100 billion by handing shares of the plants to Pakistan State Oil.
Read more: No plans to ask Pakistan to raise taxes on salaries, IMF clarifies
Earlier, the Pakistani government gave assurance to the International Monetary Fund (IMF) on maintaining the power sector’s circular debt at Rs2.31 trillion.
The Power Division presented the details before the Senate Standing Committee for Power today. The caretaker federal government assured the IMF to maintain the circular debt of the power sector.