Pakistan to sell bonds to settle oil debt

Pakistan will sell 90 billion rupees (US$1.08 billion) worth of bonds to pay off its entire energy debt, a senior government official said. The Dawn newspaper cited officials in the Finance Ministry as saying the government had finalized a plan to float 100 billion rupees (US$1.2 billion) of bonds to clear the books and eliminate the so-called circular debt. A Pakistan State Oil (PSO) official said the government and private companies owed it a total of about 95 billion rupees (US$1.1 billion). PSO has asked the government to pay back 40 billion rupees (US$480.39 million) immediately or it may default on the repayment of money it owes refineries. (August 29, 2009)