ISLAMABAD – The government has decided to release Rs 30 billion immediately to the cash strapped Pakistan State Oil, another Rs 30 billion would be paid by the end of current financial year.
The government has also directed the largest power sector defaulter, Pakistan Electric Power Company, to make arrangements for making payment of Rs 10 billion monthly to the company during the remaining four months of current fiscal year.
An official source informed that the decision was made after the receivable of the PSO swelled to Rs 164.65 billion on March 1. The company informed that with escalating receivables it was in no position to continue oil imports. It warned that it could discontinue fuel supply to the defaulting power sector companies.
Receivables of the PSO on March 1 from WAPDA stood at Rs 50.6 billion, HUBCO Rs 70.5 billion, KAPCO Rs 28.8 billion and PIA Rs 1.37 billion. While its payables stood at Rs 132.4 billion to local as well as international fuel suppliers, including PARCO Rs 31.5 billion, PRL Rs 11.5 billion, NRL Rs 33.6 billion, ARL Rs 33.6 billion and Bosicor Rs 4.6 billion.
PSO is to pay Rs 41.31 billion to KPC and fuel oil suppliers for upcoming imports. It may be noted here that the circular debt in net term had reached to Rs 230 billion and the major contributors are the inefficient power distribution companies (DISCOs) that have failed to control massive line losses and theft to the tune of Rs 125 billion per annum.
