The cash-strapped Pakistan State Oil (PSO) with receivables accumulated to Rs 153.5 billion has lodged a strong protest with Pakistan Electric Power Company (Pepco) over its failure to fulfil commitment of releasing Rs 10 billion in March 2011.
In a letter sent to Pepco, PSO authorities say "consequent upon the decision taken in the meeting held in the Ministry of Finance, PSO reacted positively by maintaining supplies during the 2nd fortnight of March 2011 to Gencos. Simultaneously, we also increased the offered quantity of Jamshoro to 35000 tons in view of its low stocks and high consumption."
"However it is a matter of concern that the monthly payment of Rs 10 billion from March 2011 to clear our outstanding receivables, remains significantly short. Till date, Rs 1.6 billion have been credited to PSO account, against prorate amount Rs 6.45 billion," the letter adds.
In order to continue the current supplies and meeting the envisaged increased demand of fuel during coming months depends on the realisation of receivable amount. "You are, therefore, requested to give relief to PSO by releasing substantial funds including the balance monthly amount of Rs 8.4 billion during the week," the letter added.
The PSO authorities said, "we would like to highlight that PSO continues to be under great financial stress as its outstanding from the power sector is Rs 155 billion, which includes Rs 40 billion from Gencos. If the position of recovery does not improve, PSO will have to regulate the supplies as it will be defaulting in its payment obligations, particularly to the international suppliers."
Comments
Comments are closed.