Govt forms committee to settle gas circular debt

Islamabad: Minister for Finance Senator Ishaq Dar has notified a committee on Circular Debt (CD) settlement plan for gas sector companies.

According to a notification issued by the Finance Division, the committee would undertake a detailed mapping of the gas sector's circular debt stock as of June 30, 2022— segregating the principal amount of debt, LPS, penalties, and LDs among the under-reference public sector entities of petroleum and power sectors.

Federal Finance Minister has constituted a committee for the settlement of circular debt in Gas sector which will submit its recommendations in 10 days. pic.twitter.com/ChNm0rwKrz

— Ministry of Finance (@FinMinistryPak) December 21, 2022

The committee has also been mandated to work out a comprehensive CD settlement plan through cash/non-cash releases/adjustments.

Besides, it would also identify legal and procedural requirements to implement of CD settlement plan.

The notification said that the committee would submit its recommendations within 10 days.

The committee comprised of Ashfaq Yousaf Tola as convener with its members including secretaries of Petroleum Division, Power Division, Additional Secretary CF, Finance Divsiion, Commissioner SECP Abdul Rehman Warraich, Chief Financial Officers of Pakistan Development Fund, Oil & Gas Development Limited, Government Holding Private Limited, Pakistan State Oil, Pakistan Petroleum Limited, Sui Northern Gas Pipeline Limited, Sui Southern Gas Pipeline Limited, and Central Power Purchase Authority.