PSO receivables stand at Rs334.1 billion

ISLAMABAD: Receivables of Pakistan State Oil (PSO) have gone up to Rs334.1 billion because of default of power sector in payments of Rs283 billion.

Sui Northern Gas Pipeline Limited (SNGPL) and PIA have also defaulted on Rs15.9 billion and Rs26 billion respectively. According to the documents available with The News, circular debt in the power sector has risen to Rs520 billion and the loans that power sector has borrowed and parked in PPHL have swelled to Rs450 billion. This means the loans and liabilities of the power sector have increased up to Rs970 billion.

PSO spokesman says that the receivables of PSO have now alarmingly increased and the government is aware of appalling situation. The power sector is needed to pay Rs283 billion to PSO as of February 05, 2018 in the head of furnace oil and diesel used for power generation. The government has now banned the import of furnace oil and diesel for power generation.

Public sector power generation companies (GENCOs) are to pay Rs152.6 billion to PSO. According to breakdown, Hubco owes it Rs84.9 billion, and Kapco Rs41.9 billion. Moreover, Rs9.6 billion is also required to be paid to PSO in the head of price differential claims from the government.

PSO as of February 05,2018 is required to pay Rs11.7 billion to refineries and Rs69 billion in the head of honouring the letter of credit for import of petroleum products from Kuwait petroleum company and stand-by letter of credits (SBLCs) for import of LNG.