Govt constitutes committee for gas circular debt settlement plan
Finance ministry tasks committee to submit report to deal with circular debt within 10 days
- Finance ministry tasks committee to devise circular debt settlement plan for gas sector.
- 14-member committee has been directed to submit report within 10 days.
- Finance minister appointsAshfaq Yousaf Tola as convener of committee.
ISLAMABAD: Ministry of Finance Wednesday constituted a committee for the settlement of gas circular debt as it piled up to approximately Rs1,500 billion.
Federal Minister of Finance and Revenue notified a committee to devise a circular debt settlement plan for gas sector companies, appointing Ashfaq Yousaf Tola as the convener.
The members of the committee include:
- Secretary/Additional Secretary (Petroleum Division)
- Secretary/Additional Secretary (Power Division)
- Additional Secretary CF, Finance Division
- Commissioner Securities Exchange Commission of Pakistan Abdul Rehman Warraich
Moreover, chief financial officers of some relevant companies are also included in the committee, these include:
- Pakistan Development Fund (PDF)
- Oil and Gas Development Limited (OGDCL)
- Government Holding Private Limited (GHPL)
- Pakistan State Oil (PSO)
- Pakistan Petroleum Limited (PPL)
- Sui Northern Gas Pipeline Limited (SNGPL)
- Sui Sourthern Gas Pipeline Limited (SSGCL)
- Central Power Purchase Authority (CPPA-G)
The committee has been tasked to undertake a detailed mapping of gas sector circular debt as of June 30, 2022, segregating the principal amount of debt, loss per share, penalties and LDs among the under-reference public sector entities of petroleum and power sectors.
According to the notification, the committee is also directed to work out circular debt settlement plan through “cash/non-cash releases/disbursements.”
The ministry has given the committee a 10-day period to submit a report with its recommendations, which should be suggested after identifying legal and procedural requirements to implement the circular debt settlement plan.
It was further notified that the committee can co-opt any other member and the Finance Division will provide the secretariat support to the committee.