PSO bank accounts restored

The Federal Board of Revenue (FBR) has notified to the Pakistan State Oil (PSO) that the company's bank accounts have been restored with immediate effect. According to a press release issued here on Saturday, the FBR had frozen the bank accounts of PSO for failing to meet its tax obligations, but reverted its decision in the light of the grave challenges faced by PSO due to its receivables hovering over Rs 170 billion.
As the largest energy company in the country, PSO has always been prompt to make payments to the FBR and has the highest contribution to the exchequer. However, the company's astounding receivables due to the ever increasing circular debt had constrained it from meeting tax obligations. The PSO management worked tirelessly to resolve the issue with FBR. Ministry of Petroleum also supported the company in its talks with FBR. The tax authorities were apprised that their decision to freeze the accounts of PSO would lead to the international suppliers' mistrust in doing business with Pakistan and its national companies. FBR was highlighted the gravity of the concern and requested was to revert their decision which they acknowledged.
While the receivables continue to tower, PSO has a responsibility to make payments to their international suppliers in order to ensure uninterrupted fuel supply to the nation. Currently the local refineries are not giving any product to PS0. Therefore the company's reliance on imports has increased. The company has urged the power sector to make immediate payments so that the company is in a better position to fulfil its international commitments and meet its tax obligations. As a responsible energy company, PSO is cognisant of its responsibilities and will struggle to continue to meet the daunting energy needs of the nation in a responsible manner.-PR