PSO’s payables, receivables surge to Rs411.1bn

ABDUL RASHED AZAD

ISLAMABAD: Pakistan State Oil’s (PSO) total payables and receivables of have swelled to Rs 411.1 billion, of which Rs244.73 billion are payables and Rs166.37 billion receivables.

Official data obtained by Business Recorder showed that within two weeks, the PSO’s receivables increased by Rs17 billion. During the same period, the company paid Rs11.5 billion to local and foreign fuel suppliers.

Power sector is a major PSO defaulter: it owed the fuel supplier Rs228.504 billion, which stood at Rs221.46 billion on July 20, surging to Rs228.5 billion on August 3.

According to official data, the oil giant’s total payables to local refineries and foreign fuel suppliers reduced by Rs11.5 billion, declining from Rs177.94 billion to Rs166.37 billion, while its total receivables from the power and other sectors, including Pakistan Railways (PR) and Pakistan International Airlines (PIA), stands at Rs244.73 billions.

The Hub Power Company Limited (Hubco) was also among leading PSO defaulters with Rs111.175 billion outstanding dues, followed by Water and Power Development Authority (Wapda) with Rs61.64 billion, Kot Addu Power Company (Kapco) with Rs36.9 billion, Karachi Electric Supply Company (KESC) Rs11.273 billion and Independent Power Plants (IPPs) Rs7.513 billion. The company is yet to receive Rs24.96 billion from Pakistan International Airline (PIA), Rs454 million from Oil and Gas Development Company Limited (OGDCL), Rs356 million from National Logistic Cell (NLC) and Rs1.44 billion from Pakistan Railways.

The company is to receive Rs 1.62 billion on account of audited price differential claim of High-Speed Diesel (HSD), over Rs3.407 billion on account of price differential on Low-Sulphur Fuel Oil and High-Sulphur Fuel Oil (LSFO/HSFO), Rs1.36 billion on account of price differential on imported PMG and Rs3.909 billion price differential under GLMP and Rs1.92 billion on account of financial charges on PIA.

At present, PSO has to payback Rs89.33 billion to local refineries, of which it owed Rs26.498 billion to Pak Arab Refinery Limited (Parco), Rs17.732 billion to Pakistan Refinery Limited (PRL), Rs10.16 billion to National Refinery Limited (NRL), Rs31.31 billion to ARL, Rs28.61 billion to Bosicor and Rs768 million to others.

The national fuel supply company has to payback Rs77.035 to Kuwait Petroleum Company Limited and other international fuel suppliers on account of Letters of Credit (LC) payments. PSO’s total payables to local and international fuel suppliers stand at Rs166.37 billions out of which Rs82 billion was overdue.

PSO is supplying fuel worth Rs 32 billion every month to the power sector, while the sector is paying back only around Rs15-16 billion per month because og which PSO’s outstanding dues are continually increasing, a PSO official told Business Recorder.

He said that the circular debt had crippled the entire economy, adding that if the government did not take immediate steps to resolve the circular debt issue, it will lead to default of major fuel supplier.