Govt forms committee to settle gas circular debt

ISLAMABAD: The Finance Ministry Wednesday formed a committee to settle gas circular debt as it accumulated up to Rs1,500 billion.

The Minister of Finance and Revenue Ishaq Dar notified a committee to devise a circular debt settlement plan for gas sector companies, appointing Ashfaq Yousaf Tola as the convener.

The members of the committee include:

• Secretary/Additional Secretary (Petroleum Division)
• Secretary/Additional Secretary (Power Division)
• Additional Secretary CF, Finance Division
• Commissioner Securities Exchange Commission of Pakistan Abdul Rehman Warraich

Moreover, chief financial officers of some relevant companies are also included in the committee, these include:

• Pakistan Development Fund (PDF)
• Oil and Gas Development Limited (OGDCL)
• Government Holding Private Limited (GHPL)
• Pakistan State Oil (PSO)
• Pakistan Petroleum Limited (PPL)
• Sui Northern Gas Pipeline Limited (SNGPL)
• Sui Sourthern Gas Pipeline Limited (SSGCL)
• Central Power Purchase Authority (CPPA-G)

The committee has been tasked with undertaking a detailed mapping of gas sector circular debt as of June 30, 2022, segregating the principal amount of debt, loss per share, penalties and LDs among the under-reference public sector entities of petroleum and power sectors.

According to the notification, the body is also directed to work out a circular debt settlement plan through “cash/non-cash releases/disbursements.”

The ministry has given the committee a 10-day period to submit a report with its recommendations, which should be suggested after identifying legal and procedural requirements to implement the circular debt settlement plan.

It was further notified that the committee can co-opt any other member and the Finance Division will provide the secretariat support to the committee.