The Finance Ministry has injected Rs 26.9 billion into Pakistan State Oil (PSO), instead of the promised Rs 35 billion, to provide short-term relief from the burgeoning circular debt, thereby enabling it to procure supplies from abroad, Courier Newhas learnt.
The Petroleum Minister had warned the Finance Minister and the Water and Power Minister that PSO was heading towards default, and said that the oil supply chain would be disrupted as a consequence. After receiving the amount, PSO receivables still stand at over Rs 100 billion.
"The PSO has received Rs 26.9 billion from Wapda, Hubco, Kapco, AES and Pakgen," sources said, adding that the Finance Ministry had released the amount to Pakistan Electric Power Company (Pepco) to make onward payment to PSO. There is unanimity among those operating in the power sector that the Finance Ministry is compelled to inject funds to rescue PSO while the power sector is not providing any money to clear its dues. "The payment was made on the intervention of Secretary Finance," sources added.
They said that the Ministry of Water should chalk out a payment plan by binding the power sector to make regular payments from its billing collections. "The PSO is not receiving its dues from the power sector which has resulted in piling up dues under circular debt," sources said.