No gas for captive power plants

Ag Agencies

KARACHI: The Sui Southern Gas Company Limited (SSGC) on Saturday stopped gas supply to all captive power plants (CPPs) for general non-export industries across Sindh and Balochistan to meet the increasing demand of domestic consumers in winters on a priority basis.

The discontinuation of supplies would come into immediate effect and supplies would remain suspended till further orders, according to a letter issued to general industries.

Meanwhile, Minister for Energy Hammad Azhar said gas shortfall is witnessed due to the usage of heaters and geysers in winter season.

ISLAMABAD: The federal cabinet Saturday approved the agreements about depositing of $3 billion aid from Saudi Arabia in the State Bank of Pakistan (SBP) and receiving fuel from it for one year on deferred payment.

According to a private TV channel, Saudi Arabia would provide fuel worth $100 million on monthly basis to Pakistan on deferred payments for one year. The Pakistan government would pay 3.8 per cent as interest to Saudi Arabia.

Initially the agreement regarding provision of fuel on deferred payment facility would be for one year, which could be extended.

The summary in this regard was sent by Economic Affairs Division. The finance ministry, SBP and the FBR agreed on the draft of the agreement.

The federal cabinet endorsed both deals via circulation summaries on Saturday.

Saudi Crown Prince Mohammad bin Salman had promised to maintain a reserve of $3bn at the State Bank of Pakistan and provide fuel to Pakistan on extended payment facility for one year during the recent visit of Prime Minister Imran Khan to Saudi Arabia.

According to the agreement, the aid would remain in the SBP deposit account for one year. The SBP finalised all arrangements and now everything is in place and the amount would be received within the next couple of days. Pakistan would, however, pay the Saudi government a 4pc yearly profit on this sum.

The agreement with the Saudi government was forwarded to the Ministry of Law and the Office of the Attorney General for Pakistan which reached an agreement on a draft.

Following the legal opinion, a copy of the agreement was submitted for approval to the federal cabinet.