Islamabad July 31 2022: Economic Coordination Committee (ECC) approved payment of Rs 30 billion for Pakistan State Oil for the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments.
Federal Minister for Finance and Revenue Mr. Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division today.
Ministry of Energy (Petroleum Division) submitted a summary on SOS call for funds for Pakistan State Oil Company Ltd. (PSOCL) to meet international contractual payments during 1-14 August, 2022. It was informed that there has been a decline of sales of HSD and MS for PSO by 28% and 32% respectively. Further devaluation of Pakistan Rupee against US dollar has resulted in increased in cost of procurement of petroleum products.
For the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of pervious government and approved an amount of Rs. 30 billion as 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 Rs. 20 billion by 1st August, 2022 and Rs. 12.8 billion by 4th August,2022.
The ECC also directed Finance Division and FBR to submit proposal for generation of Rs. 30 billion through taxes, within a week.
On another summary of Petroleum Division on price mechanism of petroleum products, the ECC accepted the proposal to use the average of exchange rate for the relevant period rather than the exchange rate of the last day for the current as well as future price determinations. The ECC also directed Petroleum Division to work out in consultation with OGRA other options of setting up petroleum product prices within a week. The ECC further directed Petroleum Division for submission of proposal within a week to regulate the prices of Kerosene Oil and Light Diesel Oil after consultation with relevant stakeholders.
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 attended the meeting.