ECC approves Rs10bn for liquidity requirement of PSO

January 03, 2023 (MLN): In order to enable Pakistan State Oil (PSO) to remain current in its payment obligations to LNG suppliers, the Economic Coordination Committee (ECC) of the Cabinet on Tuesday allowed the release of Rs10 billion budgeted subsidy to Petroleum Division and allowed government guarantee against bank financing upto Rs50bn, said a press release issued today.

The summary was tabled by the Petroleum Division for the import of LNG and petroleum products in the country. It was submitted that PSO has been engaged in the import of LNG in the country to meet the deficit in gas demand and supply and is obliged to clear its financial obligations to the supplier within the stipulated period.

In addition to it, the Ministry of National Health Services, Regulation, and Coordination submitted a summary regarding the transfer of the amount to the government of Afghanistan for functioning /maintenance/types of equipment/salaries of three Pakistani hospitals in Afghanistan.

The ECC after discussion approved the revised mechanism/modalities for the transfer of funds to Afghanistan as proposed by the Afghanistan Inter-Ministerial Coordination Cell (AICC) with direction to attempt to release the amount in Pak rupees.

As per the revised mechanism, the total amount already approved by the Cabinet for salaries i.e. Rs1bn would be transferred to Afghanistan in four tranches. The first tranche is to be transferred by the Ministry of Finance to the Ministry of NHSR&C account.

These funds would be transferred through MoFA and sent to Pakistan Embassy in Kabul. The remaining three tranches would be transferred through banking channels to the Embassy account opened for the purpose of disbursement of salaries for doctors and other staff working in hospitals in Afghanistan constructed and operated by Pakistan.

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the said meeting.

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