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National

December 7, 2017

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PSO’s economic agonies on the rise

ISLAMABAD: There seems to be no let-up for the Pakistan State Oil (PSO) in terms of its growing economic agonies as its receivables have further surged up to Rs313.5 billion mainly on account of major defaults by the power sector and PIA, causing a new hike in liquidity crisis for the entity, unfolds the receivables and payables position as of December 4, 2017. The power sector has so far failed to pay PSO the huge amount of Rs271.8 billion against the furnace and diesel oil supply consumed for power generation. Likewise, the national flag carrier PIA has also emerged as a headache for PSO, as the sizeable amount of Rs15.7 billion PIA needs to pay the state-owned oil marketing company. According to the copy of the receivables and payables position as of December 4, 2017, available with The News, public sector electric power generation companies (Gencos) need to pay Rs152.7 billion, WPPO (LSFO/HSFO price differential) are required to pay Rs3.5 billion, Hub Power Company (Hubco) Rs79.4 billion and Kot Addu Power Plant (Kapco) Rs36.1 billion. The most alarming fact is that the huge amount of Rs70.6 billion in the head of late payment surcharge (LPS) that has been accumulated in the wake of the delay in payments is required to be paid by power sector to PSO. The penalty of Rs70.6 billion will be paid from the national exchequer.
Coming to the PIA which is the second biggest defaulter of PSO, the national flag carrier owes Rs15.7 billion to the entity. PSO almost every month stops supplying the jet fuel to PIA for ensuring the current payment, albeit the backlog of Rs15.7 billion continues to be still there. It is also mentioned in the position paper about receivables and payables that the amount of Rs9.6 billion is also needed to be paid to PSO in the head of price differential claims due from the Government of Pakistan. It has also been mentioned that Sui Northern also owes Rs16.3 billion.
However, PSO’s payables have also surged to Rs84.5 billion. PSO

needs to pay Rs11 billion to six refineries. The oil marketing company is also required to pay Rs74.4 billion for opening up the Letter of Credits for import of fuel products and for payments to the Kuwait Petroleum Company apart from LNG payments.

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