PSO receivables soar to Rs317.6 bn

ISLAMABAD: The public sector entity Pakistan State Oil (PSO) has still not come out of economic crisis as its receivables have risen to whopping Rs317.6 billion and a new sector of LNG has also emerged as another cause of new financial burden amounting to Rs60.8 billion for the state owned oil marketing company.

According to receivables and payables position as of May 19, 2019 as per the latest document available with The News, LNG is emerged as new factor to add in circular debt of PSO as Sui Northern has failed to pay the Rs26.1 billion for the LNG that was diverted to domestic sector in last winter from December to February and on account of non-recovery of the LNG dues used by domestic sector, Sui Northern is unable to pay back to PSO owing to which receivables of the entity in the head of LNG has swelled to Rs60.8 billion.

The document also says that the power sector continues to be the biggest defaulter of PSO as it owes Rs208.7 billion to the government owned entity that include Gencos that are needed to pay dues of Rs134.2 billion, HUBCO (Hub Power Company) Rs52.7 billion and Kapco (Kot Addu Power Company) Rs20.7 billion and in the head of WPPO, PSO is also required to be paid Rs1.1 billion.

The most alarming part of Rs208.7 billion is that the dues amounting to Rs83.4 billion under the head of late payment surges (LPS) that the power sector needs to pay to oil marketing company. The late payment surcharge is the fine or penalty, which is paid from the tax payers’ amount on account of delayed payments.

The document also reveals that PIA also owes reasonable amount of Rs18 billion to PSO. However, the state-owned oil marketing company is also needed to be paid Rs9.6 billionin the head of price differential claims from the government and Rs20.5 billion is due to be paid in the head of exchange rate to the entity facing the financial crunch.

However, the payables of PSO to refineries and in the head of letters of credit, Kuwait Petroleum Company and stand by letter of credit (SBLC) and LNG payment have swelled to Rs62.8 billion.

The document also unfolds that PSO is required to pay Rs5.8 billion to PARCO (Pak-Arab Refinery Company), Rs2.5 billion to Pakistan Refinery Limited (PRL), Rs1.1 billion to National refinery Limited (NRL), Rs4.1 billion to Attock Refinery Limited (ARL), Rs1.2 billion to BYCO and Rs1.5 billion to ENAR.