Against Rs 28 billion outstanding dues: Wapda pays only Rs five billion to PSO

Wapda has paid Rs 5 billion to Pakistan State Oil (PSO) out of Rs 28 billion outstanding dues, while the Sindh government has also agreed to release Rs 4 billion within next few days. According to well-placed sources in the Ministry of Water and Power, PSO's total circular debt at present has surged to Rs 155 billion of which Rs 5 billion has been paid by Wapda on Thursday.
The sources said that the country at present is confronting with serious power crisis due to non-availability of furnace oil from PSO. The power sector is among the top defaulters of PSO, which has paralysed the economy. The company on September 26 requested the Ministry of Finance for the provision of Rs 50 billion out of the total outstanding dues. An official of PSO, talking to this correspondent said that despite severe financial constraints, PSO struggles to live up to its commitment to ensure uninterrupted supplies to the entire country, especially the power sector. However, the power sector owes PSO an aggregate amount of approximately Rs 131 billion of which Hubco owes PSO Rs 67 billion, whereas Kapco and Wapda owe Rs 35 billion and Rs 29 billion respectively.
On the other hand, PSO's total payables to the local refineries have touched Rs 71.18 billion on September 26, of which Rs 31.35 billion to Pak-Arab Refinery Limited (Parco), Rs 8.5 billion to Pakistan Refinery Limited (PRL), Rs 9.16 billion to National Refinery Limited (NRL), Rs 17.24 billion to Attock Oil Refinery Limited (ARL), Rs 4.28 billion to Bosicor and Rs 0.53 billions to others, including the LC payment of Rs 90.57 billion. The total liabilities of the company have crossed Rs 161 billion mark, which last week was standing at Rs 157.095 billion.
"With total receivables reaching an alarming figure of Rs 155 billion the financial situation of Pakistan State Oil (PSO) has become extremely precarious. The huge outstanding is adversely affecting PSO's liquidity and it may lead to inevitable breakdown in the supply chain, resulting in fuel shortages, which would lead PSO to default," they added.
The national energy company is supplying an average of Rs 32 billion worth fuel to the power sector on monthly basis, the power sector continuously defaults on its payment obligations to PSO. This month the power sector paid only Rs 8.5 billion as payment for the fuel oil supplied to PSO. In the recent past, the company has sent out requests for payments to the power entities including Hubco, Kapco and Wapda. However, no substantial payment has been released in September 2011. PSO 2011-12 had increased its turnover to Rs 975 billion as compared to Rs 877 billion last year. Earnings per share (EPS) also recorded an increase to Rs 86.17 per share in comparison to Rs 52.76 per share last year.