Petroleum Division prepares recommendations to resolve circular debt issue
yISLAMABAD (City News) – Petroleum Ministry has prepared recommendations for avoiding the looming crisis of circular debt and protecting petroleum companies from collapse.
According to the recommendations, the petroleum division proposed allocation of Rs3 or Rs5 per litre out of petroleum levy to the Pakistan State Oil (PSO) and issue large chunks of Sukuk bonds against entire circular debt.
It has also warned that inaction can lead to crisis of oil and gas supply.
It said the Pakistan State Oil (PSO), Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Limited (PPL) and gas companies primarily financed the circular debt of overRs1 trillion.