ISLAMABAD: Financially starved Pakistan State Oil (PSO) has sought Rs 60 billion from the ministries of finance and power to clears the bank loan which was obtained through Pakistan Investment Bonds (PIBs) in 2013 ostensibly to give an end to the menace of circular debt.
Copies of documents available with Pakistan Today revealed that Pakistan Muslim League-Nawaz (PML-N) government had obtained loan from the banks through PIBs in June 2013 to reduce the burden of Pakistan State Oil and also to get rid from the circular debt. And, the government paid Rs 98 billion to PSO under the head circular debt after getting Rs 43.80bln loan. However, now state-owned oil giant PSO is in a fix how to clear the loan as final date to clear the debt was July 19, 2017 which has expired now and it (PSO) is unable to pay back the amount of loan.
Faced with serious financial constraints ostensibly due to failure in power sector reforms and ill-financial administration by the ministries of water & power and finance, the PSO has asked the ministry of finance to immediately pay Rs 43.80bln to clear the amount of loan obtained in June 2013.
Documents further revealed that PSO’s receivables pending with power sector and Pakistan International Airlines (PIA) has exceeded Rs 295billion. And for PSO to maintain/continue the supply operation of petroleum products and furnace oil to the power plants has so far obtained Rs 142billion heavy loans from local banks, which has been causing Rs5 billion and 80 crore loss to national exchequer. Similarly, up till now PSO has faced a loss of 7 billion and 50 crore only because of sullying furnace oil to the plants. Likewise, supply of petroleum products and electricity generation would badly affect if the ministries of finance and water & power do not release Rs 60 billion for PSO during the current month of June.
It has also been learnt that PSO has paid Rs 38 billion for financing cost of loan which was taken through banks from 2009 till March 2017. Also, PSO has to collect Rs 150 billion from state owned GENCOs, Rs 66 bln from HUBCO, Rs 33billion and 20 crore from KEPPCO. More, PSO’s receivable from PIA are at Rs 15 billion and 30 crore while Rs 12 billion and 20 crore from Sui Northern Gas Pipelines Limited (SNGPL) on account of Liquefied Natural Gas (LNG) supplies.
Besides, PSO has to pay Rs 13 billion and 50 crore to country’s refineries, while it has also to clear Rs 65 billion to Kuwait Petroleum, stand by letter of credit, Qatar and Port Qasim Authority.
Official sources in finance ministry on condition of anonymity said that finance ministry was once again mulling to obtained Rs 41 billion heavy loan through PIBS to decrease the burden of PSO. However, it will cost heavily on national kitty as billions of rupees will have to give to the banks on account of mark up on loan.
