Islamabad January 3 2023: Economic Coordination Committee approved a package of PKR 60 billion for PSO to clear its financial obligations of supplier within stipulated period.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet.
Petroleum Division tabled a summary on liquidity requirement of PSO for import of LNG and petroleum products in the country. It was submitted that PSO has been engaged in import of LNG in the country to meet the deficit in gas demand and supply and is obliged to clear its financial obligations of supplier within stipulated period.
In order to enable PSO to remain current in its payment obligations to LNG suppliers as well as to maintain LNG supply chain, the ECC allowed release of PKR 10 billion budgeted subsidy to Petroleum Division and allowed GoP guarantee against bank financing upto PKR 50 billion.
Ministry of National Health Services, Regulation and Coordination submitted a summary regarding transfer of amount to Government of Afghanistan for functioning /maintenance/equipments/salaries of three Pakistani hospitals in Afghanistan. The ECC after discussion approved the revised mechanism/modalities for 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 revised mechanism, the total amount already approved by the Cabinet for salaries i.e. PKR 1.009 billion would be transferred to Afghanistan in four tranches. The first tranche to be transferred by Ministry of Finance to Ministry of NHSR&C account. These funds would be transferred through MoFA and sent to Pakistan Embassy 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.
Petroleum Division presented a summary for extended well testing (EWT) over Wali-1 Discovery Wali (E.L) and submitted that an exploration licence (EL) was granted over Wali Block to OGDCL and company drilled an exploration well named Wali-1 and made a gas/condensate discovery in Lockhart Hangu and Kawagarh Formations. Extended Well Testing is a technical requirement to appraise the said discovery over Wali-1 exploration well drilled in Wali Block. The ECC after discussion allowed one-year EWT over the aid discovery w.e.f. start of production under EWT arrangements with condition that OGDCL will submit Declaration of Commerciality (DoC) and Field Development Plan (FDP) over the Wali-1 discovery before expiry of allowed EWT period.
Federal Minister for Power Mr. Khurram Dastgir Khan, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for National food Security and Research Mr. Tariq Bashir Cheema, Mr. Shahid Khaqan Abbasi MNA/Ex-PM, Minister of State for Petroleum Mr. Musadik Masood Malik, SAPM on Finance Mr. Tariq Bajwa, SAPM on Government Effectiveness Dr. Muhammad Jehanzeb Khan, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, Federal Secretaries, senior officers attended the meeting.