Rs 67 billion dues: PSO receives Rs 8 billion from Hubco

The Hub Power Company Limited (Hubco) on Friday paid Rs 8 billion to PSO out of Rs 67 billion outstanding dues, while Wapda paid Rs 5 billion on Thursday, it is learnt. Sources in the Ministry of Water and Power told Business Recorder that on September 29 Wapda paid Rs 5 billion to PSO and the national fuel supplying company received Rs 13 billion out of a total Rs 155 billions in two days.
The total circular debt of PSO that surged to Rs 155 billion on September 26, which has now reduced to Rs 142 billions after Wapda paid Rs 5 billion on Thursday and Hubco Rs 8 billion on Friday. The PSO has to retire letter of credit worth Rs 50 billion in September. The company is importing most of the oil products from Kuwait Petroleum Company to which it has to pay another Rs 95 billion in future.
The company on September 26 requested the Ministry of Finance, the Ministry of Water and Power and the Ministry of Petroleum to direct power sector to provide Rs 50 billion out of the total outstanding dues, which it has to pay to international fuel supplier, but the government was unable to press the power sector for release of the required amount, which PSO arranged from banks in the shape of loans.
The power sector is the biggest defaulter of PSO, as it has to pay an aggregate amount of Rs 131 billion on September 29. According to details, Hubco owed PSO Rs 67 billion of which Rs 8 billion was paid on Friday, whereas Kot Addu Power Company Limited (Kapco) owed Rs 35 billion and Wapda Rs 28 billion of which Rs 5 billion were paid on Thursday.
A PSO official told BR that despite severe financial crunch, it was struggling to live up to its commitment to ensure uninterrupted supplies to the country, especially the power sector. The sources said that the country at present is confronting serious power crisis due to non-availability of furnace oil from PSO. The power sector is among the top defaulters of PSO, which has paralysed the economy.