Finance Ministry has planned to issue Terms Finance Certificates (TFCs) worth Rs 90 billion to retire the circular debt of oil, gas and power sectors. Sources said that PSO is expected to get Rs 50-60 billion money generated through TFCs.
Responding to media persons, Minister for Petroleum and Natural Resources Naveed Qamar said on Wednesday that the government was expected to clear the circular debt by August 31. He said that the government was facing difficult situation in arranging capital for clearing circular debt but expressed hope that it would be cleared by August 31.
The oil, gas and power sectors of Pakistan are still under the pressure of circular debt of Rs 204.174 billion as on August 19, resulting in fuel and power shortage problems in the country. Pakistan State Oil (PSO) is at worst situation whose receivables have accumulated to over Rs 93 billion.
The Cabinet was informed that LCs of PSO to import oil were on the verge of default due to non-payment of dues by the power sector. It was also noted that PSO was providing fuel in the country despite financial crunch and Finance Ministry was directed to immediately release funds for PSO so that it could mature its LCs for oil import. PSO is to make payment of Rs 40 billion on August 28 to mature LCs for oil import to meet domestic requirements.