The federal government has prepared a plan to inject Rs. 543 billion into Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) to reduce the oil and gas sector’s circular debt.
Sources told ProPakistani that the Ministry of Finance, on the direction of the International Monetary Fund (IMF), has prepared a plan to reduce the oil and gas sector’s circular debt.
The government will make a cash injection worth Rs. 543 billion into SSGC and SNGPL. The government will pay Rs. 241 billion to SSGC and Rs. 302 billion to SNGPL.
Sources said that the amount received by SSGC will further clear the circular of OGDCL. The SSGC will be able to repay Rs. 154 billion loan to OGDCL and Rs. 87 billion to Government Holdings (Private) Limited (GHPL), sources added.
In addition, SNGPL will pay Rs. 172 billion to OGDCL, Rs. 90 billion to Pakistan Petroleum Limited (PPL), and Rs. 40 billion to GHPL.
The dividends of OGDCL, PPL, and GHPL will also see a record increase after the repayment of pending dues. It is pertinent to note that the circular debt in the oil and gas sector has crossed Rs. 1,500 billion.
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