PSO circular debt increased to Rs 431 billion

Posted on 9 months ago

ISLAMABAD (Online): The Ministry of petroleum and Natural resources has failed to control the circular debt of the Pakistan State Oil (PSO) that has been increased to 431 billion raising threat for fuel supply in the country.
According to official data the oil giant total payables to local and international fuel suppliers have touched Rs 186 billion mark while receivables from power sector and other sectors stand at Rs 244 billion.
Sources in the Pakistan State oil told online that agency is supplying oil to the different sectors according to their demand however monthly payback from departments is meager due to which state oil agency outstanding dues are increasing constantly. Sources told circular debt of PSO is increasing at the rate of Rs15-20 billion per month due to inefficiency, non-recoveries and subsidies.
According to official data power sector is main defaulter of PSO with Rs 212 billion outstanding. Hub Power Company Limited (HUBCO) is the leading defaulter of PSO with Rs 109 billion outstanding followed by Wand Power Development Authority (WAPDA) with Rs 63 billion and Kot Addu Power company (KAPCO) with Rs 38 billion. The company has to receive two billion from Pakistan International Airline (PIA), Rs 524 million from Oil and Gas Development Company Limited (OGDCL), Rs 10 billion from Karachi Electric Company (KESC), Rs 1.447 billion from Pakistan Railways. State oil agency has to pay back Rs 186 billion to local and international refineries of which Rs24 billion to Pak Arab Refinery Limited (Parco), Rs 17 billion to Pakistan Refinery Limited (PRL), Rs 9 billion to National refinery limited (NRL), Rs 31 billion to ARL and Rs 2 billion to Biscor and Rs 88 billion to others. The PSO has to payback Rs 98 billion to Kuwait Petroleum Company Limited and other international fuel suppliers on account of Letter of Credit payments.

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