ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Friday has approved Rs25 billion to address liquidity constraints to PSO for avoiding instant disruption in LNG & Oil supply chain.

Federal Minister for Finance and Revenue Mr Shaukat Tarin presided over the meeting of Economic Coordination Committee (ECC) of the Cabinet. The ECC approved Rs828 million as supplementary grant in favour of Ministry of Information Technology and Telecommunication for Special Communication Organisation.

Keeping in mind the prevailing commodity market price trend as well as the need for import of LNG, diesel and motor spirit from March 2022 to June 2022, the ECC approved Rs25 billion as supplementary grant in favour of Petroleum Division to address liquidity constraints to PSO for avoiding instant disruption in LNG & Oil supply chain.

According to the officials, the PSO, facing financial constraints, had sought Rs50 billion from the government immediately to avert the POL availability crisis in the country. The PSO’s circular debt has increased to Rs460.38 billion. The PSO has to import five cargoes of motor gasoline in April, seven cargoes of diesel, three cargoes of furnace oil and seven LNG cargoes. According to the report, the uphill task for PSO is to cater to the country’s requirements in April. The liquidity crisis of the entity has increased manifold owing to which it is unable to cater to the energy needs of the country unless an amount of Rs50 billion is paid to PSO. The latest data about the receivables and payables position of PSO shows that the receivables of PSO have increased by Rs17 billion in one month to a staggering Rs460.381 billion in March from Rs443.8 billion in February 2022. And the payables of PSO have increased to Rs122.793 billion.

Adviser to PM on Commerce and Investment Mr Abdul Razak Dawood, Federal Secretaries, Governor SBP, and other senior officials attended the meeting.