The total receivables and payables of Pakistan State Oil (PSO) have swelled to over Rs 352 billion out of which Rs 180.3 billion are receivables and Rs 172.15 billion payables. According to official data available with Business Recorder, the national fuel supply company''s receivables from power sector increased by over Rs 6 billion in a week.
PSO receivables from Water and Power Regulatory Authority increased by Rs 2.5 billion, Rs 3 billion from Hubco, and Rs 1.5 billion from Kapco. During the week, PSO''s outstanding dues against Water and Power Development Authority (WAPDA) increased by Rs 2.5 billion, against Hub Power Company by Rs 3.2 billion and against Kot Addu Power Company by Rs 1.57 billion.
A PSO official said that this month power sector has only paid Rs 2.7 billion to PSO out of Rs 140 billion overdue payments. He said that the company continues to face serious financial problems and periodic small bailout packages extended by the government are only sufficient to meet its very short-term liquidity needs. The situation. The company''s receivables from power sector have now reached Rs 151.84 billion. He said that the company was supplying an average of Rs 32 billion worth fuel to the power sector on monthly basis, while the power sector continuously defaults on payment obligations.
Current PSO receivables include Rs 39.2 billion from Wapda, Rs 80 billion from Hubco, Rs 35.7 billion from Kapco, Rs 3.38 billion from PIA, Rs 242 million from OGDC, Rs 4.55 billion from KESC and Rs 1.2 billion from Pakistan Railways. Currently, another leading company, National Logistic Cell, has also entered the list of the national fuel supplying company''s defaulter list with Rs 355 million payable to PSO.
PSO 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. It has also to receive Rs 1.15 billion from PIA on account of financial charges.
PSO''s total payables to local refineries have touched Rs 75.8 billion mark. These include Rs 35.67 billion to Parco, Rs 10.083 billion to PRL, Rs 9 billion to NRL, Rs 18.17 billion to ARL, Rs 2.3 billion to Bosicor, and Rs 633 millions to others. LC payments of the company, which it has to pay to Kuwait Petroleum Company (KPC) and other international fuel supplying companies have swelled to Rs 98.36 billion.
"In case immediate payments are not received by the defaulting entities be it power sector or the national carrier, import of future fuel cargoes will have to be deferred as the company has exhausted its financing resources. With domestic production of fuel oil is already in doldrums, any reduction in import would result in fuel shortages, increased load shedding and disruption of flight schedules nation wide. Faced with this situation, PSO will be left with no choice but to discontinue supplies to any defaulting customer until its outstanding receivables are recovered," the official added.