Three major power sector entities including WAPDA, HUBCO and KAPCO owe a standing amount of Rs 175 billion to the Pakistan State Oil (PSO) that consequently has exhausted its credit and over-draft lines due to-non payment of L/Cs.
PSO Deputy General Manager Maryam Shah said the company was exposed to difficult situation in the context of meeting furnace oil demand. “This demand would substantially increase in the coming months of summer and money is needed to clear our dues and procure stocks before hand,” said the official.
She said the PSO was in immediate need of Rs 50 billion while another tranche of Rs 50 billion by the end of current month to settle its dues to the banks and open fresh LCs without any unnecessary delay. In reply to a question about a permanent solution to the issue itself, the official said it could be efficiently addressed if the power sector collecting Rs 60 billion to Rs 65 billion per month from its consumers share only half of the amount with PSO.
She said the PSO had been repeatedly suggesting the concerned entities and the relevant authorities to ensure payment to PSO just half of the amount collected from consumers and help the company to not only get eased the credit but avoid it as much as possible.
To another query, she said different other public sector entities and private companies also owed a substantial amount to the PSO. These organisations including the PIA, Pakistan Railways, National Logistics, OGDCL and others had been avoiding timely payment to PSO under one or the other pretext.
The official mentioned that Hubco and Kapco as per agreement with PSO were required to make payment in cash before being provided with furnace oil.