The Ministry of Finance has indicated it is willing to extend only Rs 5 billion to Pakistan State Oil (PSO) while its receivables from power sector, Pakistan International Airlines (PIA), Sui Northern Gas Pipelines Limited (SNGPL) and others have soared to Rs 296 billion. According to PSO sources, its total receivables from the power sector alone stand at Rs 231.2 billion and it is facing pressure from the government through the Ministry of Petroleum and Natural Resources to ensure uninterrupted supplies to Wapda, Hubco and Kapco to avoid power crisis in the country.
PIA and SNGPL dues to PSO are estimated at Rs 41.1 billion.
Ministry of Petroleum and Natural Resources has been regularly following up the matter with Ministry of Finance and Ministry of Water and Power for settlement of Rs 296 billion failing which it has requested the government to immediately release Rs105 billion to enable it to make payment for oil imports and improve its working capital position.
An official told Business Recorder that at present PSO is borrowing from banks and billing receipts through white oil sales but by now has utilized all available credit lines.
PSO on annual average basis imports and maintains supplies of around 575,000 Tons per month of both HSFO and LSFO (9 percent above last year average), with the current demand in the high consumption months reaching 750,000 tons valued at around Rs 40 billion every month to Muzaffargarh (1,050 MW), Jamshoro (700 MW), Hubco (1,292 MW), Kapco (1,336 MW), K Electric (800 MW) and other IPPs (1,076 MW).
With more than 67 percent of power generation from thermal sources, the IPPs and Gencos require a seamless supply of furnace oil and gas especially given the fact that IPPs and Gencos continue not to maintain mandatory days' stocks required as per their respective PPAs. In addition, PSO has maintains the supply chain of LNG in the country by bringing 6 LNG vessels every month, equivalent to 600 mmcfd since February 2017, which is almost 15 percent of the country's indigenous natural gas supply valued at Rs 15 billion a month. Most of this LNG is being used to produce electricity.