Looming default: PSO asks government to immediately release Rs 150 billion

The Pakistan State Oil (PSO) has requested the government to release Rs 150 billion, urgently so that it could pay outstanding liabilities to avoid the looming default, which at present stands at Rs 188 billion. According to sources, PSO's total circular debt has almost touched Rs 400 billion mark, and if Rs 150 billion is not being provided, the entity could default.
Its receivables Rs 190.3 billion include Rs 42.24 billion from Wapda, Rs 88.78 billion from Hub Power (Hubco), Rs 33.96 billion from Kot Addu Power Company (Kapco), Rs 3.24 billion from Pakistan International Airline (PIA), Rs 352 million from Oil and Gas Development Company (OGDC), Rs 4.26 billion from Karachi Electric Supply Company (KESC), Rs 366 million from National Logistics Cell (NLC), and Rs 932 million from Pakistan Railways.
At present, PSO's overdue amount has reached Rs 155.7 billion. The company is to receive Rs 1.4 billion on account of audited price differential claim of high speed diesel (HSD), Rs 3.4 billion on account of price differential on low sulphur fuel oil and high sulphur fuel oil (LSFO/HSFO), Rs 1.36 billion on account of price differential on imported PMG and Rs 8.6 billion price differential under GLMP.
PSO's total payables to local refineries stand at Rs 86.66 billion, including Rs 39.99 billion to Pak-Arab Refinery (Paco), Rs 13.848 billion to Pakistan Refinery (PRL), Rs 9.5 billion to National Refinery (NRL), Rs 21.11 billion to Attock Oil Refinery (ARL), Rs 2.3 billion to Bosicor, and Rs 973 million to others.
Overdue payments of the local oil refineries against the company have soared to Rs 76.2 billion. Sources said that the local oil refineries are unable to operate on their full capacity due to non-payment by the government. If LC payment of Rs 101.37 billion, which it has to pay to Kuwait Petroleum Company (KPC) and other international fuel supplying companies, are included, total liabilities of the company swell to Rs 378.3 billion, of which Rs 76.218 billion are overdue.