The federal government has once again approached the International Monetary Fund (IMF) to consider its plan for settling Rs. 1,250 billion energy sector circular debt, Finance Ministry sources told ProPakistani.
The Ministry of Energy with the Finance Division has asked the IMF to consider approving its circular debt reduction plan which involves settling around Rs. 1.25 trillion debt stock of the sector with from government funds. Notably, this plan was rejected last month.
Sources said discussions have resumed with the IMF to address the piling debt stock of the energy sector. However, any concrete action on this matter will be determined following the establishment of the newly elected government.
The IMF declined to endorse a similar proposal to settle Rs. 1,250 billion of the energy sector. The previous plan allocated Rs. 1,000 billion for the petroleum sector and Rs. 250 billion for the power sector.
Sources added that the Prime Minister’s Office may engage directly with the IMF in pursuit of this plan.
Other details of the plan suggest that Rs. 600 billion will be disbursed to the Oil and Gas Development Company Limited (OGDCL), while Pakistan Petroleum Limited (PPL) and Guddu Barrage Hydro Power Limited (GBHPL) would get Rs. 150 billion and Rs. 170 billion, respectively.
Sources added if the plan is approved, another Rs. 100 billion will be allocated to the National Power Parks Management Company Limited.
