ECC defers PSO’s request for Rs17bn

The Economic Coordination Committee (ECC) of the Cabinet was informed on Wednesday that receivables of the national fuel supplier – Pakistan State Oil (PSO) had crossed Rs612 billion and it was struggling to manage remittances to its foreign suppliers. The meeting of the ECC presided over by Finance Minister Ishaq Dar, however, did not immediately approve Rs17bn urgently demanded by the PSO to honour its liabilities to international firms, particularly its long-term fuel supplier Kuwait Petroleum Company (KPC). “The ECC deferred a summary submitted by the Ministry of Energy (Petroleum Division) for foreign exchange coverage to PSO and directed the Ministry of Energy to resubmit the summary after reviewing the numbers”, said an official statement. The Petroleum Division reported that under a credit facility provided by KPC since 2000 and extended annually for the supply of diesel, a joint account of the federal government and KPC had been set up with the National Bank of Pakistan in which PSO keeps on depositing rupee equivalent funds after 30 days of the bill of lading for each shipment.