ISLAMABAD: The International Monetary Fund (IMF) has demanded new conditions for the gas sector circular debt settlement plan, however, the Petroleum Division officials are not ready to accept the conditions.
According to details, virtual negotiations were held between Pakistan and the International Monetary Fund (IMF) regarding the circular debt of the gas sector, however, according to sources, an agreement could not be reached on a settlement plan for the total circular debt of Rs 3,300 billion.
Sources said that various proposals were considered in the negotiations to reduce the circular debt of the gas sector by about Rs 1,700 billion, however, the IMF has put forward new conditions for the settlement plan.
Sources said that the IMF has demanded that the unrecovered amounts of gas companies be booked as losses instead of liabilities, after which the two state-owned gas companies should be recapitalized by providing capital again.
Sources further said that the implementation of this condition of the IMF may lead to a significant decline in the value of the shares of gas companies, which is why the Petroleum Division officials are not ready to accept these conditions.
According to sources, due to the lack of agreement on any final outcome in the virtual talks, the matter has been postponed until September, where final negotiations will be held again on the settlement plan for the circular debt of the gas sector.
Sources said that the IMF’s proposals are likely to be given more importance in the settlement plan to be prepared in the future.
