ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has constituted a committee to set up a plan on modalities for clearing the circular debt of the Petroleum Division.
On Wednesday, the committee was constituted during the ECC meeting chaired by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh.
The committee comprised members from all the relevant stakeholders, including the Finance Division, Power and Petroleum Division, Planning Division, Securities and Exchange Commission of Pakistan (SECP), Oil and Gas Regulator Authority (OGRA), Oil and Gas Development Company Limited (OGDCL) and other concerned companies, according to a press statement.
The committee would prepare a well-rounded proposal in a month and submit before the ECC. The cabinet committee also decided that the issue of circular debt would be considered holistically and a solution would be worked out to resolve the issue.
Meanwhile, the committee approved technical supplementary grants for the National Accountability Bureau (NAB), Ministry of Health for immunization program, Ministry of Religious Affairs on account of Hajj Expenses and for Anti-Narcotics Force.
The Ministry of National Food Security and Research updated the ECC briefed the committee that Trading Corporation of Pakistan (TCP) had opened the 6th tender for 110,000MT of wheat and after price matching the total picked up quantity would be 320,000MT.
The ministry informed that there would be sufficient availability of wheat in the country by January 2021 and with the increase in supply, the prices would be lowered eventually.
The committee also enhanced the quota of Gilgit Baltistan by another 10,000 MT as per their request, from 150,000 MT to 160,000 MT. The modalities for increased quota for Gilgit Baltistan would be decided later.
The petroleum division revealed that many entities in the petroleum sector are on the verge of bankruptcy and they have been overexposed to loans from the bank to run their operations, but their dues are not being cleared.
The adverse impact of circular debt has badly affected the exploration and production activities of the state-owned companies.