The power sector has failed in bailing out cash-strapped Pakistan State Oil (PSO) as its banks overdraft is about to touch final limit of Rs 40 billion," Business Recorder has learnt reliably. The PSO borrowing limit from banks is Rs 40 billion. "PSO will not be able to borrow more from banks if its overdraft reaches final limit of Rs 40 billion," sources said adding that financial crisis will make it difficult for the company to manage the fuel supply.
PSO had restored furnace oil supply to Hubco and Kapco on credit on August 1 after Minister of Water and Power Raja Pervez Ashraf pledged to provide Rs 24.7 billion. Minister of Water and Power, Raja Pervez Ashraf assured to provide Rs 17 billion during current week followed by another tranche of Rs 7.6 billion next week on account of fuel supply to power sector.
"But PSO has received a meager amount of Rs 2 billion so far against commitment of Rs 17 billion release during the current week," sources said adding that its receivables stand at Rs 141.2 billion as on August 5 (morning). PSO is to pay Rs 117 billion to local as well as international fuel suppliers.
PSO wants payment plan from power sector on account of fuel supply instead of piecemeal payments, which failed in resolving the issue of circular debt. "Payments should be made continuously and payment plan be given to PSO for future fuel supplies," sources said adding that all the pending dues against power sector and other consumers should be cleared to enable PSO to make fresh fuel deliveries," sources maintained. PSO had sought Rs 55 billion from two major power generation companies-Hubco and Kapco to bail it out of financial crisis but these companies were not making payment to PSO. Oil refineries have already reduced fuel supply to PSO due to non-payment of dues.
"PSO is mainly depending on banks borrowing due to non-payment of dues by power sector to ensure fuel supply operations across the country," sources said adding that PSO has asked two major power generation companies to arrange Rs 55 billion as Kapco Rs 15 billion and Hubco Rs 40 billion. PSO management has also accused the Pakistan Electric Power Company (Pepco) which was not paying any amount to PSO from its collection from the consumers. "This is a serious concern for PSO that despite substantial increase in electricity tariff, power sector is unable to pay even for current supplies," sources noted.
Comments
Comments are closed.