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November 15, 2017

Liquidity crisis hits PSO as receivables jack up to Rs307 billion


November 15, 2017

ISLAMABAD: The receivables of Pakistan State Oil (PSO) have swelled to whooping over Rs307 billion resulting in the massive liquidity crisis for the state-owned entity mainly cropped up on account of huge default of worth over Rs276 billion by power sector and Rs15.7 billion by the PIA.

According to the daily financial sheet unfolding the receivables and payables position of PSO as of today (November 13, 2017), also available with The News, the receivables of the state-owned entity has surged up to Rs307.1 billion owing to which its capacity to maintain the operations of importing the furnace oil for powerhouses and jet fuel for PIA has eroded manifold. Both the power sector and PIA, as per the financial sheet, in a penalty will have to pay Rs71 billion to PSO as late payment surcharge and this amount will have to be paid from the national exchequer just because of the fact that power sector and PIA failed to pay the arrears of the PSO on time.

Gencos (power generation companies) are, as per daily financial sheet, needed to pay the huge amount of Rs155.5 billion and in the head of price differential of LSFO, HSFO, the amount of Rs3 billion is also needed to be paid. In addition, HUBCO (Hub Power Company) owes PSO the sizeable amount of Rs81.5 billion and KAPCO (Kot Addu Power Company) Rs35.1 billion. And southern electric also needs to pay Rs0.1 billion.

For PSO, PIA has also emerged as permanent headache as the national flag carrier has failed to clear the dues of Rs15.7 billion. More importantly in the head of price differential claims, the arrears have been accumulated up to Rs9.6 billion. And coming to the non-payment by Sui Northern Gas Company against the supply of LNG has also emerged as irritating issue for PSO and to this effect the arrears have increased up to Rs5.8 billion.

More important PSO’s payables currently stand at Rs80 billion which include the payables of Rs16.7 billion to refineries and Rs63 billion amount which is to be paid for the payments against the letter of credits opened for the imports from Kuwait and LNG supplies from Qatar.

The government owned oil marketing company is to pay to (Pak-Arab Refinery) PARCO Rs6.6 billion, (Pakistan Refinery limited) PRL Rs3billion, (National Refinery Limited) NRL Rs1.7 billion, (Attock Refinery Limited) ARL Rs2 billion, BYCO Rs2.5 billion, and ENAR Rs0.9 billion.

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