ISLAMABAD: The state owned oil marketing company--Pakistan State Oil--receivables have alarmingly surged all-time high up to whopping Rs296 billion as against the amount of Rs234 billion stood on June 30, 2016, a senior official at Ministry of Petroleum and Natural Resources told The News.
The raise in receivables of PSO, he said, has eroded its ability to run its operations such as importing of furnace oil, diesel and LNG on account of non recovery of its dues which power sector and PIA owe to pay. And owing to the cash-flow situation that is emerged out of non-availability of recovery of arrears, PSO has borrowed Rs142 billion from commercial banks to run its operations so that country could not experience the fuel crisis which may give birth to further intensity in the power crisis in the country.
The non-payment by power sector and PIA has exposed the national exchequer to the huge loss of Rs72 billion in the shape of late payment surcharge. More importantly commercial banks have also extended some indications that they are no more willing to give further loans to PSO and their credit limit towards the entity is close to be over exposed.
The immediate challenge, the official said, for PSO is to build fuel stocks by June 30, 2017, to overcome the increasing power outages for which there is no progress at all as the demand of PSO seeking Rs105 billion (Rs50 billion for clearance of backlog and Rs55 billion for piling of fuel stock) is still lying un-noticed. However, some sources say that the Ministry of Petroleum and Natural Resources is considering to prepare a summary for immediate release of Rs55 billion to pitch before the chief executive of Pakistan who himself is very touchy to the power outages.
When contacted, spokesman confirmed saying that PSO’s receivables have unprecedentedly jacked up to staggering Rs296 billion mainly because of non-payment from power sector, PIA and Sui Northern.
He also confirms that PSO has borrowed Rs142 billion loans to keep its operations intact, but refused to agree that commercial banks are hesitant to extend further loans to the state owned entity. The spokesman, however, informed that PSO’s payables have reached to Rs50 billion out of which the entity is needed to pay Rs12 billion to refineries, and Rs38 billion in the heads of letter of credit on import of fuel from Kuwait Petroleum company and for stand by letter of credit against the import of LNG payments.