Cash-strapped PSO’s receivables reach Rs509bn

Faced with serious financial constraints, Pakistan State Oil (PSO) has asked the government to release funds to Sui Northern Gas Pipelines Limited (SNGPL), GENCOs (power generation companies) and Pakistan International Airlines (PIA) so that they can clear PSO’s dues.

Well-informed sources in the petroleum division informed that state-owned oil giant has been facing serious financial problems and it has requested the  government to release funds to SNGPL, GENCOs and PIA so that they will be able to clear PSO’s dues. They said that PSO’s receivables are Rs509 billion and payables Rs165 billion as of March 29, 2022. They said delay in the clearance of PSO’s dues has worsened the financial health of PSO. If the government does not release funds to clear PSO’s dues then the PSO may not be able to meet its obligation to suppliers, said sources.

Sharing details of PSO’s receivables position, the sources said that SNGPL has become the top defaulter of PSO as it (SNGPL) is required to pay Rs278.844 billion, while the second biggest defaulter is the power sector which owes Rs167.737 billion.

As per details, GENCOs are required to pay Rs140.866 billion, the Hub Power Company (HUBCO) is to pay Rs21.705 billion, and the Kot Addu Power Company (KAPCO) is to pay Rs5.167 billion. Similarly, Pakistan International Airlines (PIA) has emerged as the third biggest defaulter that owes Rs22.483 billion.  Likewise, the government is to pay Price Differential Claims (PDC) amounting to Rs8.934 billion for the period 1996-2014 and Rs12.311 billion for the financial year 2022 and Rs10.6 billion under the head of exchange rate differential on the FE 25 loan.

About payables position of PSO, sources told that the PSO’s payables under the heads of the Letter of Credits (LCs) for fuel imports from the Kuwait Petroleum Company (KPC) and the standby letter of credits (SBLC) for the import of LNG payments have soared to Rs123.260 billion.

The PSO’s payables to refineries have also increased to Rs33.641 billion which includes Rs18.349 billion to the Pak-Arab Refinery Company (PARCO), Rs7.021 billion to Pakistan Refinery Limited (PRL), Rs2.082 billion to National Refinery Limited (NRL), Rs5.146 billion to Attock Refinery Limited, and Rs1.043 billion to ENAR, said sources.

As per sources, PSO has planned to import 250,000 metric tons of Mogas, High Speed Diesel (HSD) 330,000 metric tons, High Sulphur Furnace Oil (HSFO) 260,000 metric tons, and 50,000 metric tons of Low Sulphur Furnace Oil (LSFO) during the month of April 2022.               

It is pertinent to mention that Pakistan State Oil is the largest oil marketing company of Pakistan with a widespread network comprising 3,500+ retail outlets, 9 installations, 23 depots, refueling facilities at 10 airports, with two state-of-the-art lubricant manufacturing facilities and LPG storage and bottling facilities. The company has been actively involved in enriching the lives of people since its inception in 1976. PSO has a vast history of shaping the industry and bringing innovative fueling products and services to serve the nation effectively. The company takes pride in fueling the journeys across air, land, and sea for over four decades, and becoming the nation’s choice.

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