The Finance Ministry has decided to release Rs. 30 billion to the Pakistan State Oil (PSO) this week, well-informed sources told ProPakistani.
Finance Ministry sources said that Rs. 5 billion of the full amount was released to Sui Northern Gas Pipelines Limited (SNGPL) for payments to PSO, in addition to disbursements to domestic consumers and fertilizer plants.
The remaining Rs. 25 billion will be disbursed during the current week. Sources added that SNGPL is poised to promptly transfer the allocated Rs. 30 billion to PSO upon receipt. This move is anticipated to have positive implications for the financial health of the money-hungry state-run oil importer.
Sources indicated that the Federal Cabinet is expected to make a consequential decision next week regarding the allocation of two power plants to PSO. This move aims to alleviate the burden of circular debt within the sector.
Also, the transfer of these power plants’ shares to PSO is expected to reduce the circular debt of the gas sector by a substantial Rs. 100 billion. Sources mentioned that authorities are also working to potentially reduce the total debt of PSO by Rs. 130 billion.
