Receivables of Pakistan State Oil (PSO) have gone up to Rs 336.2 billion because of default of power sector in payments of Rs 272.6 billion.
The Senate Standing Committee on Petroleum was briefed on Monday regarding details of loans taken by the PSO in local and foreign currencies from banks, etc, during the last five years with names of banks, rates of interest, term and justification. The committee was also informed about the pending inquiries by external agencies against PSO officials.
Deputy Managing Director PSO Yaqub Sattar said that the receivables of PSO have increased and the government is aware of appalling situation. The power sector was needed to pay Rs 272 billion to PSO as of September 23, 2018 in the head of furnace oil and diesel used for power generation.
Public sector power generation companies (GENCOs) are to pay Rs 154.3 billion to PSO. According to breakdown, Hubco owes it Rs 71.1 billion, and Kapco Rs 45.5 billion. Moreover, Rs 9.6 billion is also required to be paid to PSO in the head of price differential claims from the government.
Sui Northern Gas Pipeline Limited (SNGPL) and PIA have also defaulted on Rs 25.3 billion and Rs 17.2 billion respectively.
He said that the actual receivables were Rs 242.3 billion and LPS was Rs 93.9 billion, adding that Rs 88.8 billion were borrowed from various commercial banks till June 30, 2018. The PSO borrows from banks to finance the circular debt due to perpetual default in payments by the power sector.