Govt to release Rs400 billion to power, gas companies

Islamabad: The federal government decided to release Rs400 billion to the electricity and gas companies to reduce the revolving loans of the energy sector.

According to the media reports, 400 billion rupees reduction in revolving credit is included in the International Monetary Fund (IMF) benchmark. 260 billion rupees have to be released to power plants and 140 billion rupees to K-Electric by June 2024.

The finance ministry stated that initially 140 billion rupees are being released to power plants, 57 billion rupees are being released to K-Electric.

Finance Ministry added that out of Rs197 billion, 70 billion rupees will be withdrawn from government power plants, while Rs200 billion will be reduced in the revolving debt of the energy sector.

The gas companies will be provided with 65 billion rupees to reduce the revolving debt of the gas sector, while Pakistan Petroleum Limited will pay the dividend amount when the gas companies receive the money.