Power sector pays PSO Rs 13 billion out of Rs 160 billion dues
December 03, 2011
ABDUL RASHEED AZAD
The power sector paid Rs 13 billion out of Rs 160 billion to Pakistan State Oil (PSO), but its local and international liabilities increased by Rs 12 billion in a week.
According to official documents available with Business Recorder on December 2, the receivables of PSO have swelled to Rs 168.2 billion and payables to Rs 160.63 billion.
On November 25 PSO's local and international liabilities were Rs 148.27 billion, which on December 2 swelled to Rs 160.63 billion.
The company's receivables from power sector have reduced by Rs 13 billion in a week as on November 15 its outstanding dues against power sector touched Rs 160 billion mark.
The Water and Power Development Authority (Wapda) paid Rs 1.84 billion to PSO, Hub Power Company paid Rs 3.38 billion, and Kot Addu Power Company paid Rs 7.74 billion.
Present PSO receivables include Rs 35.7 billion from Wapda, Rs 73.4 billion from Hubco, Rs 33.4 billion from Kapco, Rs 3.45 billion from PIA, Rs 236 million from OGDC, Rs 4.66 billion from KESC and Rs 1.05 billion from Pakistan Railways.
PSO is to receive Rs 1.4 billion on account of audited price differential claim of high speed diesel (HSD), Rs 3.4 billion on account of price differential on low sulphur fuel oil & high sulphur fuel oil (LSFO/HSFO), Rs 1.36 billion on account of price differential on imported PMG and Rs 8.6 billion price differential under GLMP.
The power sector is the main defaulter of the PSO at Rs 147 billion.
PSO's payables to local refineries have crossed Rs 78 billions mark.
It owes Rs 35.6 billion to Parco, Rs 10.48 billion to PRL, Rs 9.14 billion to NRL, Rs 19.7 billion to ARL, Rs 2.3 billion to Bosicor, and Rs 0.788 billion to others.
LC dues of Kuwait Petroleum Company (KPC) and other international fuel supplying companies swelled by Rs 11.6 billion within a week, which on November 25 stood at Rs 71.015 billion now have reached Rs 82.6 billion.
The PSO is supplying on average Rs 32 billion worth of fuel to the power sector monthly, which persistently defaults on its payment obligations to PSO.
An official of the company said that PSO has now reached a critical level.
The continuous non-payment by public sector entities has left PSO cash-strapped and unable to meet its payment obligations to both local and international suppliers.
"In case immediate payments are not received by the defaulting entities, be it power sector or the national carrier, import of future fuel cargoes will have to be deferred as the company has exhausted its financial resources.
With domestic production of fuel oil already in doldrums, any reduction in import would result in fuel shortages, increased load shedding and disruption of flight schedule nation-wide.
Faced with this situation, PSO will be left with no choice but to discontinue supplies to any defaulting customer until its outstanding receivables are recovered" the official added.