Karachi: Pakistan State Oil (PSO) has requested the government to disburse PkR 50 bn on immediate basis so that it could repay/retire dues to International fuel suppliers and avoid defaults on oil import.
According to Alfalah Securities Limited, PSO has been facing a severe setback for quite a long time due to non-payment of dues from the Independent Power Plants (IPPs) as their total dues have crossed over PkR 202.34 bn. Out of the total outstanding dues from IPPs, HUBCO owes over PkR 98 bn, Wapda owes PkR 54 bn, KAPCO owes PkR 21 bn, KESC owes PkR 7 bn, PIA owes PkR 3.44 bn, Pakistan Railways owes PkR 1.33 bn and OGDC owes 0.28 mn to PSO. The company has also to receive PkR 1.4 bn on account of price differential claim of diesel, PkR 3.4 bn on LSFO/HSFO, and PkR 1.36 bn on imported PMG.
At present PSO’s payables to local refineries have reached PkR 82.3 bn out of which it owes PkR 26.65bn to PARCO, PkR 14.45bn to PRL, PkR 9.36bn to NRL, PkR 28.11bn to ARL, PkR 2.6 bn to Bosicor while remaining PkR 1.15bn to others. The circular debt continues to grow at a fast pace and is one of the main reasons of crippling the efficiency of the entire energy chain and requires strong administrative measures to bring transparency, remove line losses, theft and defaults from the consumers. PSO has been repeatedly seeking government to clear its dues for which the government takes adhoc measures and the core issue remains intact.