ECC okays Rs30bn supplementary grant for PSO receivables

August 1, 2022 (MLN): The Economic Coordination Committee (ECC) of the Cabinet has decided to clear the outstanding payments accumulated during the period of the previous government and approved Rs30 billion as a supplementary grant for PSO receivables.

Federal Minister for Finance and Revenue Mr Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Finance Division yesterday.

Ministry of Energy (Petroleum Division) submitted a summary on the SOS call for funds for Pakistan State Oil Company Ltd. (PSO) to meet international contractual payments during 1-14 August 2022.

It was informed that there has been a decline in sales of HSD and MS for PSO by 28% and 32% respectively. Further devaluation of the Pakistan Rupee against the US dollar has resulted in an increase in the cost of procurement of petroleum products.

For the smooth continuity of the oil and gas national supply chain and to avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of the previous government and approved an amount of Rs30bn as a supplementary grant for PSO receivables.  

It was also decided in the meeting that Power Division will make immediate payments of the current outstanding amounts of Rs20bn by 1st August 2022 and Rs12.8bn by 4th August 2022.

The ECC also directed Finance Division and FBR to submit a proposal for the generation of Rs30bn through taxes, within a week.

The meeting was attended by Federal Minister for Power Mr Khurram Dastgir Khan, Mr Shahid Khaqan Abbasi – MNA/ex-PM, Minister of State for Petroleum Mr Musadik Masood Malik, Coordinator to the PM on Economy Mr Bial Azhar Kayani, Chairman FBR, Chairman OGRA, Federal Secretaries and senior officers.

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