Pakistan State Oil (PSO) has reportedly informed the Finance Ministry that its receivables against various public sector entities, including power sector have swelled to Rs 229 billion and it is facing serious liquidity problems.
Sources in the Finance Ministry told Business Recorder that WAPDA owes Rs 114 billion to PSO, Hub Power Company (Hubco) Rs 54 billion, PIA Rs 10.258 billion, Oil and Gas Development Company Limited (OGDCL) Rs 435 million, Kot Addu Power Company (KAPCO) Rs 24.642 billion, Karachi Electric Supply Company (KESC) Rs 5.618 billion, National Logistic Cell (NLC) Rs 354 million, Saba Power and Southern Electric Rs 730 million and Pakistan Railways Rs 801 million.
Sources added that PSO claims Rs 953 billion on account of Audited Price Differential - (HSD), Rs 3.4 billion on account of Price Differential on LSFO/HSFO, Rs 1.351 billion on account of price differential PMG, and Rs 3.909 billion price differential on account of GLAMP & NDTC-KESC.
Sources further stated that the company has to pay Rs 105 billion including Rs 90 billion for LC payment to KPC and fuel oil suppliers. Other payables of the company included Rs 6.295 billion to PARCO, Rs 4.440 billion to PRL, Rs 4.973 billion to ARL and Rs 316 million to NRL as well as others Rs 1.582 billion.
Sources said the company has been managing the affairs for the last three to four months but is now facing default due to rising financing cost of borrowing. They added that PSO would be unable to continue to supply oil if the power sector does not clear the receivables. An official of the Finance Ministry said the ministry was paying Rs 25 billion monthly to the power sector on account of tariff differential subsidy and Rs 50 billion has already been paid for the first two months of the current fiscal year. The government has budgeted Rs 185 billion as subsidy for the power sector with Rs 156 billion on account of inter-tariff differential for WAPDA/PEPCO and Rs 29 billion for KESC.