ISLAMABAD: The government has prepared a comprehensive plan to deal with the revolving debt of Rs 1,640 billion in the gas sector.
The plan includes a dividend of Rs 800-850 billion from the two gas utilities SNGPL and SSGCL, as well as tariff hikes and protection of low-income consumers from rising gas prices. Includes adjusting the syllabus.
To break the impasse with the IMF, the government is working on a plan to end the revolving credit for the energy sector, power and gas, which has crossed Rs 4.1 trillion.
The government is also working on a plan to cut off outstanding dues at source by intergovernmental departments. Various options have been considered to prevent the accumulation of revolving debt due to non-payments within state-owned enterprises (SOEs).
On Saturday, Finance Minister Senator Ishaq Dar chaired a meeting regarding reforms in the energy sector in the Finance Division.
A special committee headed by Ashfaq Tola worked on revolving credit in the gas sector and it was estimated at Rs 1640 billion. The sustainability of the gas sector cannot be ensured unless reforms are brought in and unaccounted for gas (UFG) cuts are not made. A hike in gas tariff from 60% to 78% is also on the cards as the government works to revise the existing slab to avoid overburdening lower slab consumers.
According to an official statement issued by the Ministry of Finance, Minister of State for Finance and Revenue Dr. Ayesha Ghos Pasha, Minister of State for Petroleum Mossadegh Masood Malik, SAPM for Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Ashfaq Yusuf Tola, Chairman RRMC, Chairman SECP, Controller General of Pakistan, Accountant General of Pakistan and senior officers of Finance and Petroleum Division participated in the meeting.
Ashfaq Yusuf Tola, Convener of the Committee for Settlement of Revolving Debts in the Gas Sector briefed the Chairman on the amount of revolving debt in the gas sector and the mechanism and framework for introducing reforms in the energy sector to reduce the burden of revolving debt in the gas sector. can be reduced. .
In the meeting, feasible proposals were considered to bring sustainability in the energy sector to achieve economic development in the country.
Finance Minister Senator Ishaq Dar emphasized the government’s priority to resolve the issues of the energy sector, including the revolving credit for the financial stability of the sector and the economic development of the country. The Finance Minister directed the committee to finalize its report and action plan for early settlement of revolving debts in the gas sector.
