Pakistan State Oil gets Rs30 billion to avoid default

Pakistan State Oil gets Rs30 billion to avoid default

ISLAMABAD: An amount of Rs30 billion has been approved for Pakistan State Oil (PSO) to avoid payment default.

The approval has been given at a meeting of Economic Coordination Committee (ECC), which was held in Islamabad on Sunday with Minister for Finance and Revenue Miftah Ismail in the chair.

READ MORE: PSO posts massive growth of 245% in six months

For the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of pervious government and approved an amount of Rs30 billion rupees as supplementary grant for PSO receivables.

It was also decided in the meeting that Power Division will make immediate payments of the current outstanding amounts of Rs20 billion by tomorrow [August 01, 2022] and Rs12.8 billion by August 04, 2022.

READ MORE: Pakistan decides to lift ban on imported goods

The ECC also directed Finance Division and FBR to submit proposal for generation of Rs30 billion through taxes within a week.

On another summary of Petroleum Division on price mechanism of petroleum products, the ECC accepted the proposal to use the average of exchange rate for the relevant period rather than the exchange rate of the last day for the current as well as future price determinations.

READ MORE: ECC approves petroleum dealer margin at Rs7/liter

The ECC directed Petroleum Division to work out options in consultation with OGRA for setting up petroleum product prices within a week.

The ECC directed the Petroleum Division to submit a proposal within a week to regulate the prices of Kerosene Oil and Light Diesel Oil after consultation with relevant stakeholders.

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