ISLAMABAD: With petroleum sector circular debt going beyond Rs1.5 trillion and power sector debt on top of Rs2.5tr, Finance Minister Ishaq Dar on Wednesday constituted a committee led by the president of the Institute of Chartered Accountants of Pakistan Ashfaq Tola to suggest a way forward on settlement of gas sector debt.

The 13-member committee would be responsible to undertake a detailed mapping of the ‘gas sector circular debt stock as of June 30, 2022’, segregating the principal amount of debt, late payment surcharges, penalties and liquidity damages among the PSEs of petroleum and power sectors.

It would work out a comprehensive circular debt settlement plan through cash and non-cash payments and adjustments and also cover legal and procedural requirements on the pattern of a previous circular debt settlement in 2013.

Published in Dawn, December 22nd, 2022