ISLAMABAD: The circular debt of Pakistan State Oil (PSO) has reached all-time high at Rs 425.446 billion by 2021-end.
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 PSO that is to pay Rs184.8 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 Rs38.9 billion and Kapco to pay Rs5 billion.
In addition, Genco receivable including late payment charge (LPS) is Rs140.7 billion
The Sui Northern Gas Pipeline Limited (SNGPL) emerged as another defaulter in LNG that is to pay Rs194.1 billion to PSO.
Meanwhile, the SNGPL claimed that it had to receive over Rs160 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 Rs22 billion from the Pakistan International Airlines (PIA) and the government of Pakistan.
Copyright Business Recorder, 2022