PTI Government once again decided to give the bailout package for the energy sector, which is about Rs. 340 billion. According to the report, the decision was taken during the meeting of Federal Economic Advisory Committee (ECC) headed by Federal Finance Minister Asad Umar.
According to ECCP decisions, Rs. 200 billion will be issued to Power Holding Private Limited (PHPL) under Islamic capitalization. However, the National Power Parks Management Company Limited was also allowed to issue the sovereign guarantee.
Talking with media, a Senior Officer said, in this regard ECCP formed a committee comprising officials for Power, Petroleum, Finance and Law Division and Securities and Exchange Commission of Pakistan to work out a mechanism for Islamic financing for PHPL through a consortium of banks, led by Meezan Islamic Bank.
He further said that this committee will submit its recommendations within a week, after which funds will be issued in the oil and gas sector, which is gripped by more than Rs. 1.2 trillion circular debts including a fresh flow of almost Rs. 700 billion.
The committee was told that Syndicated Term Finance Facilities of Rs. 607.035 billion had already been completed in the name of PHPL for funding repayment liabilities of Discos. The conventional banks are not ready to commit more funds to the sector, owing to their over exposure.
According to a separate decision, the National Power Parks Management Company Limited (NPPMCL) Company, which operates the Balloki and Haveli Bahadur Shah Power Plant in Punjab, will be given a bill of Rs. 38 billion package. The package to be given to the NPPMCL aims to meet the remaining price of power plant.