PSO receivables, payables reach Rs 307.5 billion mark

Total of receivables and payables of the Pakistan State Oil's (PSO) have reached Rs 307.5 billion. Out of this, Rs 155.5 billion are receivables and Rs 152 billion are payables.
According to official documents available with Business Recorder, the PSO receivables include Rs 31.5 billion from the Water and Power Development Authority (Wspda), Rs 66.5 billion from the Hub Power Company (Hubco), Rs 33.5 billion from Kot Addu Power Company (Kapco), Rs 2.3 billion from Pakistan International Airline (PIA), Rs 299 million from the Oil and Gas Development Company (OGDC), Rs 5.7 billion from Karachi Electric Supply Company (KESC), and Rs 1.15 billion from Pakistan Railways.
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 & high sulphur fuel Oil (LSFO/HSFO), Rs 1.36 billion on account of price differential on imported PMG and Rs 7.6 billion price differential under GLMP.
The power sector owes PSO an aggregate amount of approximately Rs 137 billion, of which Hubco owes PSO Rs 66.5 billion, Kapco Rs 33.5 billion, and Wapda Rs 31.5 billion. KESC owes Rs 5.7 billion. PSO's total payables to local refineries touched Rs 69 billion on October 19, of which Rs 31 billion are owed to Pak-Arab Refinery (Parco), Rs 8.5 billion to Pakistan Refinery (PRL), Rs 9.43 billion to National Refinery (NRL), Rs 16.91 billion to Attock Oil Refinery (ARL), Rs 2.8 billion to Bosicor and Rs 362 million to others. If LC payment of Rs 83.057 billion is included, total liabilities of the company are in excess of Rs 152 billion.
"With total receivables reaching an alarming figure of Rs 155 billion the financial situation of Pakistan State Oil (PSO) has become extremely precarious. The huge outstanding is adversely affecting PSO's liquidity and it may lead to inevitable breakdown in the supply chain, resulting in fuel shortages in the country, which would lead PSO to default," an official of PSO said. While the PSO is supplying on average Rs 32 billion worth of fuel to the power sector on monthly basis.