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The cash strapped Pakistan State Oil (PSO) received Rs 8 billion on Wednesday from Hub Power Company (Hubco) on account of fuel supply, it is learnt. PSO had received Rs 20 billion on Tuesday from Water and Power Development Authority (Wapda) and Kot Adu Power Company Limited (Kapco).
The disbursed amount of Rs 28 billion from Wapda, Kapco and Hubco is part of the commitment made by Finance Ministry to release Rs 30 billion to PSO to ease its financial woes. Finance Ministry has committed to provide Rs 30 billion to PSO in coming quarter of ongoing financial year 2010-11.
As on March 8, 2011, the PSO receivables against different clients mainly power sector had accumulated to Rs 169.18 billion negatively affecting the ability of PSO to continue smooth operation of fuel supply. "After receiving amount from Wapda, Hubco and Kapco, PSO receivables have declined to Rs 144.3 billion that is still a big challenge to continue operations," sources maintained. PSO is to make payment of Rs 54.9 billion to Kuwait Petroleum Corporation (KPC) and other international fuel suppliers for oil imports.
As on March 9, 2011, PSO receivables against different clients were as follows: Wapda Rs 37.015 billion, Hubco Rs 65.4 billion, Kapco Rs 27.09 billion, PIA Rs 1.5 billion, OGDC Rs 297 million, KESC Rs 2.001 billion, financial charges from PIA Rs 1.017 billion, price differential claims (PDC) on High Speed Diesel (HSD) Rs 1.382 billion and PDC on imported PMG Rs 4.68 billion. PSO's payables were: Parco Rs 34.5 billion, PRL Rs 11.8 billion, NRL Rs 9.25 billion, ARL Rs 33.99 billion and Bosicor Rs 4.69 billion.

Copyright Business Recorder, 2011

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