ISLAMABAD: Pakistan State Oil’s receivables against Hub Power Company (Hubco) have piled up to over Rs25.33 billion. These include Rs 7.2 billion late payment surcharge.
Pakistan State Oil, in a letter to Chief Executive Officer Kamran Kamal, stated that its current liquidity is under immense pressure due to constant default by power sector customers, which resulted in overstretched/choked credit lines. “We drew your attention to the insufficient payment against supplies to Hubco, thereby resulting in huge accumulated outstanding amount of Rs 25.33 billion.
The delay in payment against principal amount is further increasing the LPS charges against Hubco,” said General Manager, Strategic Consumer Business & Cards, Asad R Faiz in his letter to the CEO Hubco.
Pakistan State Oil further wrote with concern that Hubco kept deducting the amount from the daily allocated payment being released by CPPA-G. As a result, out of total allocation from July 22 till March by CPPA-G of approximately Rs 37.1 billion PSO has received only Rs 61 billion whereas total supplies during said period were Rs 10.8 billion.
“Under the current critical financial situation, PSO is facing consistent liquidity issues and therefore non-payment from already allocated amount to PSO is clearly not acceptable to PSO,” cautioned General Manager, Strategic Consumer Business & Cards.
Pakistan State Oil’s argues that due to non-payments/short payments PSO finds it difficult to meet payment obligations, and is requesting to arrange sufficient funds to PSO account for the realization of PSO’s claims of overdue amount of Rs 18.1 billion at the earliest.
Pakistan State Oil also urged Hubco to ensure compliance of the relevant payment terms of FSA by releasing substantial payment against late payment charges of Rs 7.2 billion.
Copyright Business Recorder, 2023
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