Thursday, March 04, 2010
Outstanding receivables touch Rs 84.6 bn
By Khalid Mustafa
ISLAMABAD: The government-owned Oil and Gas Development Corporation (OGDC) has become a major victim of the circular debt, which has jeopardised its exploration & production plans and the payment of royalties to the provinces.
A highly informed senior official of the Ministry of Petroleum and Natural Resources told The News: “If no attention is paid to OGDC’s fiscal problems then its entire business plan of US$1 billion for the ongoing fiscal year will be badly hurt and aggravate the ongoing energy crisis in the country.”
Well placed sources said the Dhakni field expansion was already in the doldrums as it required $200 million investment and the cash strapped OGDC was not in a position to invest because of the circular debt issue.
“The OGDC has traditionally had rich cash flows but the circular debt is crippling its affairs as its outstanding receiv…