Islamabad (Business Desk): The International Monetary Fund (IMF) has introduced new conditions for resolving the growing circular debt in the gas sector.
According to sources, the IMF has demanded that the financial losses of both state-owned gas companies be formally included in their accounts, while amounts that are no longer expected to be recovered should also be treated as losses.
Sources said that the IMF has suggested that after recording the losses, the gas companies should be provided with fresh capital to improve their financial condition.
However, according to officials, implementing these conditions could affect the value of the gas companies’ shares, due to which Petroleum Division officials are expressing reservations about accepting these proposals.
According to sources, the total circular debt of the gas sector has currently reached approximately Rs3,300 billion, while under the proposed plan, settlement of around Rs1,700 billion in debt is being considered.
Officials said that no final agreement could be reached on the gas sector circular debt settlement plan during recent online negotiations. Further talks will now be held in September, while the next plan is expected to be prepared while keeping the IMF’s proposals in consideration.