Pakistan State Oil (PSO) supplied 1.4 million liters oil to rescue Pakistan Railways from oil crisis despite several cheques released by the latter have been bounced adding to the financial woes of the former. PSO''s total outstanding against Pakistan Railways stand at Rs 750 million and cheques issued by Pakistan Railways are constantly bouncing.
Sources said that Pakistan Railways is also not sharing any payment plan with PSO. "We have been requesting them to sign fuel supply agreement for the past two years which would safeguard interests of both entities but Pakistan Railways is not co-operating," sources said adding that PSO supplied 1.2 million liters to Railway on Monday.
PSO took special measures and provided 1.4 million liters oil to Railways just to avoid their wheels to come to a halt. Documents revealed that PSO wrote a letter to Pakistan Railways on January 7, 2011 to draw attention towards default of Pakistan Railways cheques meant for clearing dues. PSO said that Pakistan Railways cheque No 658936 amounting Rs 198,664,994 was dishonoured on December 29, 2010.
"We would like to bring to your notice that the cheques issued in favour of PSO have been dishonoured by the bank on the pretext of "Insufficient amount Availability" in Pakistan Railways account," PSO said, adding that it may be highlighted that the dishonouring of cheques issued by Pakistan Railways has now become a regular feature further adding to PSO financial woes. Due to accumulation of unpaid bills, PSO cash flow cycle has been seriously disrupted.
"As a result of which, we are experiencing restraints in meeting the future energy needs of our customers, therefore we regret to inform you that we cannot guarantee the continuity of fuel supplies to Pakistan Railways until the outstanding dues are cleared," PSO letter adds. In the light of the foregoing, Pakistan Railways was requested to advise the relevant officials to release payments against PSO bills without delays and ensure availability of sufficient funds in the Pakistan Railways account to avoid the dishonouring of cheques.
In another letter written to Pakistan Railways on December 20, 2010, PSO had also protested over dishonouring of two cheques worth Rs 126 million. PSO (Lahore Office) received cheques No A658934 dated 15 December 2010 amounting Rs 314, 787,776 from Pakistan Railways on 15 December, 2010 against supply of fuel. The cheque was in transit (for PSO-HQ Khi) and had not been forwarded to concerned bank for clearance due to lack of confirmation by Pakistan Railways regarding availability of sufficient funds.