ISLAMABAD: The circular debt of Pakistan State Oil (PSO) has reached all-time high of Rs397.5 billion in November.
The PSO continued to dominate the energy landscape, exhibiting an outstanding growth of 21.9 percent in liquid fuels over last year with volumes reaching 9.2 million tons, attaining a market share of 46.3 percent in financial year 2021 compared to 44.3 percent in financial year 2020.
It continues registering profit that reported an all-time high net profit after tax. The PSO made a profit of Rs11.9 billion in the first quarter of the fiscal year 2021-22. Its profit was owing to inventory gains that led to its higher profitability in wake of rising oil prices.
The power sector was a key defaulter of the PSO that is to pay Rs192.5 billion to the company on account of oil supply.
Other Independent Power Plants (IPPs)-Hubco and Kapco are also defaulters of the PSO.
Hub power company (Hubco) emerged as a chronic defaulter of the PSO, which is to pay Rs43.18 billion.
The Sui Northern Gas Pipeline Limited (SNGPL) emerged as another defaulter in LNG that is to pay Rs161 billion to the PSO.
Meanwhile, the SNGPL claimed that it had to receive over Rs100 billion from domestic gas consumers.
The PSO imports LNG from Qatar and supplies it to the SNGPL onward to distribute to the customers.
The PSO is to receive Rs36 billion from the Pakistan International Airlines (PIA) and the government of Pakistan.
Government is to pay Rs10.16 billion on account of price differential claims.
The company is also to receive Rs5.3 billion on account of exchange loss on the FE 25 loan.
Copyright Business Recorder, 2021