Islamabad – Web Desk : The Government of Pakistan has prepared a plan to eliminate Rs 1,500 billion of the gas sector’s circular debt over the next three years and has sought approval from the International Monetary Fund (IMF) for the initiative.
According to official sources, the proposal was discussed during the third review of the $7 billion bailout program, though the IMF has not yet given final approval. The government aims to secure approval before June to allocate funds in the upcoming budget for paying one-third of the total outstanding debt.
The total circular debt in the gas sector has exceeded Rs 3,400 billion, including approximately Rs 1,800 billion of principal amounts. The plan envisages payment of Rs 1,500 billion, while the remaining amount is tied up in tax refunds and pending court cases.
Under the proposed plan, oil and gas companies will receive payments on the condition that they waive approximately Rs 1,600 billion in surcharges levied on delayed payments.
Officials said this step aims to strengthen the energy sector’s financial health and improve the overall fiscal situation in the country.
