ISLAMABAD: The Cabinet Committee on State-Owned Enterprises on Thursday rejected a request for exemption from international accounting and financial reporting standards for two circular debt-hit state-owned gas utilities — Sui Southern Gas Ltd (SSGL) and Sui Northern Gas Pipeline Ltd (SNGPL) — to avoid the two being declared insolvent.
However, the cabinet committee led by Finance Minister Muhammad Aurangzeb “instructed the Petroleum Division to undertake further deliberations with the Finance Division and the Law and Justice Division and submit a revised proposal for consideration,” said an official statement.
The Petroleum Division had sought exemption ‘for specified energy sector state-owned enterprises (SOEs) from the applicability of International Financial Reporting Standards (IFRS-14 and IFRS-9),’ the statement added.
Informed sources said a similar three-year exemption had already been availed by these entities. The finance minister reportedly observed that such an exemption could not be granted in such a hurry, given that the SOEs Act 2023 has been in place. Therefore, he directed that the matter, being of a serious nature, should be deliberated at length, given the strong opposition from the Central Monitoring Unit (CMU) of the Ministry of Finance, which monitors all SOEs in accordance with the requirements of the International Monetary Fund (IMF).
