Pakistan In Focus - Ministry suggests choices to settle debt.

Amid warnings of a massive oil and gas shortage, the Petroleum Division has proposed a comprehensive package to the Economic Coordination Committee (ECC) as it seeks settlement of circular debt worth Rs1.6 trillion in the energy chain.

At present, oil and gas companies are facing financial collapse, which may lead to disruption in oil and gas supply across the country.

Pakistan State Oil (PSO), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and Pakistan LNG Limited (PLL) are the entities mainly trapped in the Rs1.6-trillion circular debt.

Of the total debt, Rs1.08 trillion is the principal and Rs520 billion is the markup. The Petroleum Division has proposed the issuance of Sukuk (Islamic bonds) to cover the entire...