PSO financial position: receivables Rs 180.8 billion; payables Rs 148.27 billion

The total receivables and payables of Pakistan State Oil (PSO) have swelled to over Rs 329 billion of which Rs 180.8 billion are receivables and Rs 148.27 billion payables. According to official data available with Business Recorder, the company's receivables from power sector increased by nearly Rs 6 billion within a week as of November 19 its outstanding dues against power sector stood at Rs 154.8 billion which now surpassed Rs 160 billion mark.
Within a week PSO outstanding dues against Water and Power Development Authority (Wapda) rose by Rs 1.44 billion, Hub Power Company (Hubco) by Rs 2.3 billion and Kot Addu Power Company (Kapco) by Rs 1.97 billion. The PSO total receivables included Rs 37.54 billion from Wapda, Rs 76.77 billion from the Hub Power Company (Hubco), Rs 41.27 billion from Kot Addu Power Company (Kapco), Rs 3.32 billion from Pakistan International Airline (PIA), Rs 305 million from Oil and Gas Development Company Limited (OGDCL), Rs 1.8 billion from Karachi Electric Supply Company (KESC) and Rs 1.062 billion from Pakistan Railways.
At present Pakistan's leading fuel supplying company's overdue amount has crossed Rs 141.78 billion, which last week stood at Rs 138 billion. The company is to receive Rs 1.4 billion on account of audited price differential claim of High Speed Diesel (HSD), Rs 3.4 billion on account of price differential on Low Sulphur Fuel Oil & High Sulphur Fuel Oil (LSFO/HSFO), Rs 1.36 billion on account of price differential on imported PMG and Rs 8.6 billion price differential under GLMP.
The power sector is the main defaulter of the PSO, which at present owes an aggregate amount of Rs 160.34 billion, while on November 19 power sector owed Rs 154 billion, which was on November 11 Rs 137 billion. The data shows that within two weeks PSO outstanding dues against power sector have increased by over Rs 23 billions.
PSO total payables to local refineries have crossed Rs. 77 billions mark at present, which on November 19 stood at Rs 72.27 billion; it was shows that within a week PSO payables to local refineries have increased by Rs 5 billion. The PSO payables to local refineries includes Rs 35.6 billion to Pak-Arab Refinery Limited (PARCO), Rs 10.8 billion to Pakistan Refinery Limited (PRL), Rs 9.35 billion to National Refinery Limited (NRL), Rs 18.38 billion to Attock Oil Refinery Limited (ARL), Rs 2.3 billion to Bosicor and Rs 549 millions to others.
If LC payment of Rs 71.015 billion, which it has to pay to Kuwait Petroleum Company (KPC) and other international fuel supplying companies, are included total liabilities of the company swell to Rs 148.7 billion mark of which Rs 71.27 billion are overdue. On November 19 PSO total liabilities stood at Rs 143 billion. The data shows that within a week total liabilities of the public sector fuel supplying company have increased by over Rs 5 billion. The company is supplying an average of Rs 32 billion of fuel to the power sector on monthly basis, the power sector continuously defaults on its payment obligations to PSO.
The continuous non-payment by the power sector has made PSO severely cash strapped. As a result, the company has defaulted on local refineries payments this month, which has adversely affected local production. Furthermore, the company is constantly struggling to meet its international payment obligations, as any default on the part of PSO to its international suppliers would disrupt supplies with their resumption expected to take months. The committee was shocked to learn that the power company was not able to collect Rs 150 billion from the private sector and more importantly that the people managing the affairs of the company were clueless to tackle the problem.