Saturday December 02, 2023

PSO receivables soar to Rs718bn with payables at Rs219bn

February 01, 2023

ISLAMABAD: With circular debt in the energy sector at Rs4,200 billion, the Pakistan State Oil’s (PSO) receivables have soared to an alarming high of Rs718.016 billion, with payables at Rs219.070 billion.

The biggest defaulter is the Sui Northern Gas Pipelines Limited (SNGPL) which owes PSO a huge amount of Rs455.045 billion against the LNG imports, the daily receivables and payables position of PSO as of January 30, 2023, available with The News, showed on Tuesday.

Of Rs219.070 billion payables, PSO liabilities have soared to Rs188 billion required to offload for import of POL products from Kuwait Petroleum Company (KPC) and LNG imports from Qatar.

The power sector continued to hold the position of the second biggest defaulter as it owes PSO Rs178 billion.

Details show that the Central Power Purchase Agency and GENCOs are the defaulters of Rs148.141 billion, followed by Hubco with Rs25.356 billion and KAPCO Rs5 billion.

However, the flag carrier, Pakistan International Airline (PIA) is the third defaulter in a row that is required to pay Rs25.514 billion.

In the head of price differential claims from the government during 1996-2014, PSO is also required to be paid Rs8.934 billion. Under the head of exchange rate differential on FR 25 loan, the PSO is owed Rs51.070 billion.

Data reveals that SNGPL, power sector, and PIA dues towards PSO have

also swooped upward to Rs124 billion just in the head of LPS (late payment surcharge) showing the said entities are inefficient.

As far as the payables are concerned, PSO is required to offload its liabilities of Rs188 billion in the heads of the opening of LCs for the import of POL products from KPC and standby letter of credits for LNG imports.

The financial sheet also divulges the bitter fact that PSO is the defaulter of refineries as it has failed to pay the dues of Rs30.430 billion to five refineries.

This amount includes Rs22.092 billion of Pak-Arab Refinery Company (PARCO), Rs155 million of Pakistan Refinery Limited (PRL), Rs2.176 billion of National Refinery Limited (NRL), Rs4.980 billion of Attock Refinery Limited (ARL), and Rs1.027 billion for ENAR.