KARACHI: Pakistan State Oil (PSO) is reportedly on verge of default as the company needs Rs 50 billion urgently to retire back-to-back Letter of Credits (L/Cs) of furnace oil which are due this week
The sources said PSO has written to all the companies to pay their overdue amounts with immediate effect to save the national oil supplier from default.
In response to PSO’s threatening letter that furnace oil supply will be suspended to the power sector if payment is not made with immediate effect, the Finance Ministry on Monday released Rs 5 billion to PSO on behalf of Water and Power Ministry, the sources continued.
Official documents reveal that at present total receivables of PSO from power and other sectors stand at Rs 158.43 billion of which Rs 54.2 3 billion is due from Wapda, Rs 64.6 billion from the Hub Power Company (Hubco), Rs 14.9 billion from Kot Addu Power Company (Kapco), Rs 1.84 billion from Pakistan International Airline (PIA), Rs 419 million from Oil and Gas Development Company Limited (OGDCL), Rs 9.2 billion from Karachi Electric Supply Company (KESC), Rs 573 million from National Logistic Cell (NLC), Rs 1.5 billion from Independent Power Plants (IPPs) and Rs 1.29 billion from Pakistan Railways.
The company is to receive Rs 1.52 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 3.91 billion price differential under GLMP.
PSO’s total payables to local refineries stand at Rs 34.15 billion. These include Rs 20.86 billion to Pak-Arab Refinery Limited (Parco), Rs 1.08 billion to Pakistan Refinery Limited (PRL), Rs 134 million to National Refinery Limited (NRL), Rs 8.63 billion to Attock Oil Refinery Limited (ARL), Rs 2.3 billion to Bosicor and Rs 1.07 millions to others.
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