PSO still facing financial miseries

ISLAMANAD: After being paid Rs22 billion, Pakistan State Oil (PSO) is still in financial miseries amounting to Rs312.7 billion as it is being exposed to another kind of circular debt that stands at Rs24.2 billion on account of LNG imports.

The non-payment by Sui Northern Gas Pipeline Limited (SNGPL) against the LNG imports has also become headache for the PSO which is already facing the no payment of Rs262.8 billion from the power sector and Rs16.2 billion from national flag carrier — PIA, unfolds receivables and payables position of PSO as of April 5, 2018.

The government has just released Rs53 billion to offload the volume of circular debt in power sector out of which Rs22 billion has been paid to PSO. However, the financial miseries of PSO are still at higher side as the total receivables of the entity stands at Rs312.7 billion.

The receivables and payables position also reveals that public sector electric power generation companies (Gencos) owe PSO the mammoth amount of Rs147 billion, Hub Power Company (Hubco) Rs73.3 billion and Kot Addu Power Company (Kapco) Rs39.2 billion. However, in the head of preferential differential of Lower Sulpher Furnace Oil and High Sulpher Furnace Oil, receivables of PSO stands at Rs3.3 billion.

The most alarming fact mentioned in the position of PSO is that from the national exchequer (taxpayers amount), power sector will have to pay huge amount of Rs70.5 billion in the head of late payment surcharge just on account of its failure in ensuring the timely payments to PSO.

Earlier after power sector, PIA was the second biggest defaulter, but now Sui Northern has surpassed PIA and became the second largest defaulter of PSO as it now requires to pay Rs24.2 billion.

As far as the import liabilities of PSO required in letter credit for Kuwait Petroleum Company and Standby Letter Credit for LNG payments are concerned, these have hiked to Rs39.9 billion.

The payables from PSO to national refineries have swelled to Rs15.1 billion which includes Rs7.2 billion for Pak-Arab Refinery Company (Parco), Rs2.4 billion for Pakistan Refinery Limited, Rs0.7 billion for National Refinery Limited, Rs1.8 billion for Attock Refinery Limited, Rs2.2 billion for Byco and Rs0.8 billion for Enar.