The government on Saturday released Rs 4 billion to Pakistan Electric Power Company (Pepco) for making payment to Pakistan State Oil (PSO) for furnace oil supply, it is learnt. The PSO management had requested for immediate release of Rs 20 billion to import oil as it feared default of LCs. PSO had supplied oil costing Rs 14.1 billion during February but received only Rs 6.4 billion.
Due to non-payment of dues, PSO receivables have gone up to Rs 93 billion against power sector, PIA, and price differential claims against government. Sources said that PSO expected to receive the amount of Rs 4 billion from Pepco on Monday.
PSO is to pay over Rs 60 billion to oil refineries. Sources said that PSO would transfer the said amount to oil refineries as soon as it received it. Despite the financial crunch, the new management of PSO increased the furnace oil supply to power sector from 20,000 tons to 32000 tons per day in an effort to enhance power generation to overcome load shedding.
Sources said that due to enhanced furnace oil supply and efficiency of Pepco, power generation has increased to 11600 MW per day against the demand of 12115 MW, with a shortfall of 515 MW per day. Total power generation was 9952 MW against demand of 12410 MW with a shortfall of 2458 MW in the corresponding period last year. Circular debt was also causing problems for Pepco as its receivables were Rs 270 billion and, in turn, it owes Rs 180 billion. Sources said that Pepco is to recover Rs 20 billion from provinces and Rs 70 billion from the private sector.
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