ECC set to approve release of funds to PSO and SSGC

Aftab Ahmed

Islamabad: Economic Coordination Committee (ECC) is set to approve release of funds to Pakistan State Oil (PSO) and Sui Southern Gas Company (SSGC).

PSO will receive Rs. 28 billion from federal government on account of foreign exchange losses. In addition, the economic coordination committee will also approve allocation of 25 million cubic feet per day (mmcfd) to SSGC that will help reduce the gas crisis looming in Sindh.

Adviser to the Prime Minister on Finance & Revenue Dr Abdul Hafeez Shaikh will chair the meeting. PSO had been authorised by the Ministry of Finance to arrange foreign exchange requirements for oil imports under FE-25 to release pressure on the country’s foreign exchange reserves. PSO had faced a loss of Rs 28 billion because of exchange rate fluctuations and government had given assurance earlier these losses would be borne out by the finance ministry.

The ECC will also approve release of outstanding gas bills to SSGCL on account of minimal gas supplies being provided to Pakistan Steel Mills to keep its machines in heat mode. The PSM had been on zero production heat mode since June 2015 after its gas bills went beyond Rs35bn and the gas supplies were cut.

ECC will approve allocation of 25 mmcfd gas from Rizq field to M/S SSGCL. The gas field is located in district Daddu, Sindh. M/S POGC and M/S PPL are joint partners in this field. The government has granted approvals of declaration of commerciality (DOC), joint field development plan and development and production leases.

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