The federal government has made a strategic decision to release Rs400 billion to electricity and gas companies, aiming to alleviate the burden of revolving loans within the energy sector.
This substantial reduction in revolving credit aligns with the International Monetary Fund (IMF) benchmark, with a specific allocation of 260 billion rupees earmarked for power plants and 140 billion rupees designated for K-Electric by June 2024.
The finance ministry outlined the phased disbursement, initiating the release of 140 billion rupees to power plants and 57 billion rupees to K-Electric.
Notably, out of Rs197 billion, 70 billion rupees will be withdrawn from government power plants, contributing to a substantial reduction of Rs200 billion in the energy sector’s revolving debt.
Furthermore, gas companies are set to receive 65 billion rupees to alleviate the revolving debt within the gas sector.
The financial dynamics involve Pakistan Petroleum Limited disbursing the dividend amount concurrent with the receipt of funds by the gas companies.
