PSO receivables rise to Rs173bn

ISLAMABAD: The Pakistan State Oil (PSO) paid about Rs 5 billion to Kuwait Petroleum Company (KPC) in the past two days, while its receivables against power sector and other local clients rose to Rs 173 billion, sources told Business Recorder.

They said tat PSO's longstanding circular debt again rose to around Rs173 billion, leading to severe liquidity constraint that is likely to compromise its ability to pay for critical fuel imports.

PSO's payables to local oil refineries stand at Rs 79.72 billion at present and payables to international oil supplier KPC stand at Rs 81.75 billion. On December 7 its payables to KPC and other international oil suppliers amounted to Rs 86.7 billion, which on December 9 declined to Rs 81.7 billion.

Sources said that PSO's total payables to refineries and international fuel suppliers on Dec 9 reached Rs 161.48 billion from Rs 164.7 billion of December 7.

"During last two days PSO paid about Rs 5 billion to KPC on account of letters of credit. Serious problem caused by non-payment from power sector and PIA has crippled PSO's position and may lead to inevitable breakdown in the supply chain, resulting in fuel shortages in the country", they added.

They said that PSO has requested the government for immediate release of Rs 80 billion to keep the company afloat, otherwise serious power crisis would erupt in the country yet again.

According to one PSO official, the company continues to face serious financial problems and periodic small bailout packages extended by the government were only sufficient to meet the very short-term liquidity needs of the entity. This situation, they said, continues since 2008. The national fuel supply company's receivables from power sector have now reached Rs 151.84 billion.

At present PSO receivables include Rs 36.6 billion from Wapda, Rs 76.7 billion from Hubco, Rs 33.99 billion from Kapco, Rs 3.65 billion from PIA, Rs 181 million from OGDC, Rs 4.66 billion from KESC, and Rs 1.085 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 8.6 billion price differential under GLMP.

PSO's payables to refineries have reached Rs 79.7 billion. The payables to refineries include Rs 36.4 billion to Parco, Rs 11.38 billion to PRL, Rs 9.2 billion to NRL, Rs 19.8 billion to ARL, Rs 2.3 billion to Bosicor, and Rs 633 million to others.