The receivables of Pakistan State Oil are said to have increased by Rs 34 billion just in one year period due to "measured" payments by the public sector entities, especially "out of crisis" power sector and Pakistan International Airlines (PIA). Well-informed sources told Business Recorder on Friday that Ministry of Water and Power is not uplifting furnace oil as per their demand conveyed earlier in writing, which is leading to blocking of PSO's investment.
Though the government claims that it is paying due amount to the PSO, the outstanding dues of the PSO against public sector entities have reached Rs 252. According to sources, total major receivables are Rs 252 billion, of which Rs 190.4 billion are overdue, Rs 5.6 billion are not due and Rs 56 billion are late payment surcharge (LPS).
The PSO management has written a number of letters to the Ministries of Finance, Petroleum and Water and Power, all major consumers of furnace oil, and sought their help recover dues from the Genco and PIA but the outcome is almost negligible. The PSO reported to the government on Friday that its receivables have reached Rs 251.8 billion as on December 21, 2016. The PSO is of the view that it is on the verge of default due to continuous pile-up of receivables against power sector which have reached Rs 222.6 billion in addition to Rs 5.2 billion of SNGPL against supply of RLNG as of December 21, 2016.
The sources said total receivables against public sector power generation companies (Gencos) stood at Rs 128.4 billion of which Rs 102.5 billion are overdue, Rs 1.6 billion are not due and Rs 24.3 billion are LPS. The amount of receivables against Wapda Power Privatisation Organisation (WPPO) LSFO/ HSFO PD was Rs 6.9 billion.
Hub Power Company (Hubco), a private power generation company, has to pay Rs 66 billion to PSO of which Rs 46.7 billion are overdue, Rs 1.5 billion are not due and Rs 18.2 billion are LPS. Kot Addu Power Company (Kapco) owes Rs 19.6 billion to PSO, which includes Rs 5.6 billion as overdue and Rs 13.3 billion as LPS. The stock of receivables against Saba Power and Southern Electric is Rs 0.2 billion whereas Karachi Electric has to pay Rs 1.2 billion.
The sources said the amount of receivables from Pakistan International Airlines (PIA) and GoP stands at Rs 14.4 billion, of which Rs 13.7 billion are overdue whereas Rs 0.7 billion are not due. The price differential claims of GoP constituted an amount of Rs 9.6 billion. The PSO, sources said, also highlighted that its over draft (OD) lines utilisation has increased and further default in payment by power sector could lead to a situation where default in Letter of Credit (LC) may occur.
Power sector's total payables had jumped to Rs 461 billion by the end of 2012 before the government took up circular debt of Rs 480 in June and July 2013 seriously. It dropped to Rs 207.2 billion as a consequence of this settlement criticised by the opposition parties for being in violation of mandatory pre-audit statutory requirement. However, the Ministries of Water and Power and Finance are still facing the ire of different forums of the Parliament for payment made to "blue eyed" power companies.