ECC forms a body to settle Rs 1.6 trillion debt

Our Correspondent

The Economic Coordination Committee (ECC) on Wednesday formed a committee to settle Rs 1.6 trillion debt in the oil and gas sectors.

Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of the ECC.

A committee will prepare a well-rounded proposal in a month and submit it before the ECC. ECC also decided to consider the issue of circular holistically to work out a solution.

PSO, OGDCL, PPL and PLL are facing circular debt amounting to around Rs 1,601 billion of the entire country. It includes 1,081 billion of principal and Rs 520 billion of markup.

The petroleum division had proposed ECC issuing SUKUK bonds against the entire circular debt. It also proposed a settlement of Gas Development Surcharge (GDS) payable by PPL on Gas Sales to Genco.

https://newztodays.com/pakistans-total-debt-and-liabilities-up-by-rs-14-4-trillion-in-pti-regime/

It also proposed adjustment of debt with equity in profitable public sector entities, Power projects, companies in the energy chair.

The Petroleum division also proposed an adjustment by adding a fixed rate in the gas price of SNGPL/SSGCL to recover their receivables. The committee will examine these proposals for a final decision.

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ECC approved technical supplementary grants for NAB, Ministry of Health for immunization program, Ministry of Religious Affairs on account of Hajj Expenses, and for Anti-Narcotics Force.

Wheat situation

The Ministry of National Food Security and Research updated the ECC on the situation of wheat import. The Ministry said TCP had opened the 6th tender for 110,000 MT of wheat. The total quantity would be 320,000 MT.

MNFS&R also informed that there would be sufficient availability of wheat in the country by January 2021 and with the increase in supply, the prices would be lowered eventually.

ECC also enhanced the quota of Gilgit Baltistan by another 10,000 MT. It had requested from 150,000 MT to 160,000 MT.