The Senate was informed on Friday that different private and public sector institutions owe Rs 168 billion to Pakistan State Oil (PSO), which, if not paid, would lead to economic collapse. Dr Asim Hussain, minister for petroleum and natural resources told the House that this is a serious issue which needs to be tackled on war-footing otherwise we would have no option but to take it to the parliament.
The main institutions which have to pay the outstanding includes Wapda, PIA, Railways, Navy, Pakistan Army, NLC, Hubco, KESC and Kapco, Asim said, adding that PSO outstanding dues against government amounts to Rs 38.792 billion and Rs 115.684 billion against non-government organisations. He said during the current month, Wapda would issue letter of credit to PSO, so that oil could be supplied to power producing companies. About gas load shedding in winter, the minister said he could not assure there would be no load shedding at all. However, gas load management plan has been prepared.
As usual the House started proceedings without ministers and Dr Asim was the only Cabinet member, who was there to attend the session. This lack of interest on the part of ministers infuriated the members. Safdar Abbasi, a dissident PPP senator said the ministers have their own priorities while the premier has lost control over his Cabinet.
Senate Chairman Farooq H Naek reacting to this said he has been told that minister for housing and works is busy at the Supreme Court in connection with a RPPs case. The senators had no option but to take on Dr Asim Hussain, 'the lone minister' who kept on answering tough questions.
Giving further details about PSO outstanding following a question raised by Senator Ismail Buledi, Asim said that Wapda had to pay Rs 30.6 billion, PIA Rs 2.2 billion, Pakistan Railways Rs 1.2 billion, Pakistan Army and Pakistan Air Force Rs 1.1 billion, OGDC Rs 340 million, government banks Rs 310 million, National Logistics Cell (NLC) Rs 421 million, Pakistan Navy Rs 150 million, Pakistan Steel Mills Rs 71 million, Pakistan Ordnance Factories Rs 31 million, Heavy Industries Taxila Rs 30 million, Pepco Rs 69 billion, Kepco Rs 34 billion and Karachi Electric Supply Company (KESC) Rs 5 billion.
Responding to a question by Senator Tahir Hussain Mashhadi, the minister said during the last one year, the government has completed digging of 131 oil and gas wells each. He said there was huge gap in supply and demand of gas in the country. However, the government was taking different measures to increase gas production.
Asim said Pakistan Refinery Limited has signed a long-term agreement with Iran to import 12000 barrel crude oil per day. However, due to recent US and EU sanctions on Iran, the refinery is facing problems in opening LCs. Due to these problems, he said, no crude oil is being imported from Iran since November 2010.