Govt Again Bails Out PSO with Rs. 27 Billion Grant

The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved an immediate technical supplementary grant of Rs. 27 billion for Pakistan State Oil (PSO) for onward transmission to Kuwait Petroleum Cooperation (KPC) to avoid an international default.

Federal Minister for Finance and Revenue Senator Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC).

The Ministry of Energy (Petroleum Division) submitted a summary on the credit facility from Kuwait and presented that the government is utilizing a credit facility extended by Kuwait Petroleum Corporation (KPC) against the supply of diesel oil under the term contract with Pakistan State Oil (PSO) since 2000 and the term contract is extended every year.

PSO deposits the rupee equivalent with the National Bank of Pakistan (NBP) after 30 days from the bill of lading date of each shipment and NBP transfers the cargo cost to KPC, Kuwait. In the current situation, this account has witnessed huge exchange losses due to upheaval in the rupee-dollar parity during the last 12 months.

Considering the above situation, the committee approved an immediate technical supplementary grant of Rs. 27 billion for Kuwait Petroleum Company.

Wheat Supply to GB

The ECC considered a summary of the Ministry of Kashmir Affairs and Gilgit-Baltistan on wheat supply to Gilgit-Baltistan (GB) and approved the immediate release of 25,000 MTs to GB for the months of March and April, to avoid a shortage of wheat in the region, especially during the holy month of Ramzan.

Keeping in view the current wheat price, the committee granted an additional amount of Rs. 2.9 billion through a technical supplementary grant to meet the urgent requirement of GB. The meeting further directed the ministry to submit a comprehensive plan for price rationalization in consultation with concerned stakeholders for consideration of the ECC within 30 days.

Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Federal Secretaries, and other senior officers attended the meeting.

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