ISLAMABAD: The state-owned oil company - Pakistan State Oil (PSO) - has sought help from the Ministry of Petroleum for early settlement of Rs197.7 billion outstanding dues with the power sector to avoid financial default and to continue the supply of fuel for power generation.
Share of power sector in outstanding dues of the PSO is 58 percent of the total outstanding.
The PSO receivable against the power sector is Rs197 billion against total outstanding of Rs338.568 billion.
A reminder to the Ministry of Energy Petroleum Division (MoEPD) on February 10th, mentioned receivables of the PSO against circular debt from the power sector.
GENCO-1. GENCO-III, CPPA, HUBCO and KAPCO, owe a sum of Rs197 billion to the PSO.
The outstanding amounts against HUBCO and KAPCO as of October 31, 2020 amounted to Rs53 billion and Rs12 billion respectively.
A letter sent to the chief executive of GENCO-III also mentioned the details of financial breakdown of outstanding amount of Rs131 billion, and regretted that no major payment had been remitted to clear the principal overdue amount of Rs69.3 billion and Late Payment Interest (LPI) of Rs62.4 billion.
“The unnecessary delays and insufficient payment against outstanding receivables is further aggravating our precarious financial position as a result of liquidity issues. In view of PSO’s current financial constraints which is attributable to huge outstanding receivables of Rs131.7 billion from GENCO-III, you are therefore urged to take up with the concerned authorities for early release of funds,” the PSO said in the letter.
A PSO letter sent to HUBCO said HUBCO had been in default of making payments to PSO against credit supplies since May 2018.
“We regret to note that till date no major recovery has been remitted to clear the principal overdue amount if Rs23.33 billion and LPI of Rs29.67 billion,” the PSO said.
A letter addressed to KAPCO said the total accumulated LPI charges amounting to Rs12.2 billion were outstanding against KAPCO since 2009 and sought early payments to avoid further inflation of LPI charges.
The PSO receivable against the Sui Northern Gas Company Limited also reached to Rs110.3 billion against supply of RLNG and furnace oil. The dues against the PIA also recorded at the highest level at Rs20.8 billion.
Price differential claims from government is Rs9.6 billion. PSO has to pay Rs14.4 billion to refineries.
Copyright Business Recorder, 2021