Pakistan’s Finance Division refuses guarantee to LNG importer

Source: The Express Tribune


Islamabad: The Finance Division has spun down a request of State-Run Pakistan LNG Limited (PLL) for further guarantees worth $150 million in the wake of fiscal constraints and to circumvent violation of loan terms settled with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) signed in the end of the fiscal year 2019. PLL, which imports liquefied natural gas (LNG) – is fronting a default-like situation due to the stacking up of the enigmatic “Circular Debt”. The company is confronting cash constraints due to revenue shortage, as Sui Northern Gas Pipelines Limited (SNGPL) has to pay dues amounting to over Rs 55 billion by recovering from Power Producers and Rs 11 billion from Sui Southern Gas Company. The issue came up for discussion among economic managers in a recent meeting of the Economic Coordination Committee (ECC) of the cabinet.