State-owned oil giant Pakistan State Oil (PSO) has been facing severe financial constraints as its receivables have increased to more than Rs 551 billion while payables reach above Rs 277 billion.
According to well-informed sources, delay in the clearance of billion rupees worth dues by the state-owned Sui Gas company, power sector and Pakistan International Airlines (PIA) has worsened the financial health of PSO. And, if the government does not release funds to clear PSO's dues then the PSO may not be able to meet its obligation to fuel suppliers, resulting in the country's energy security being at risk.
'PSO has been requesting the government to release funds to Sui Northern Gas Pipelines Limited (SNGPL), power generation companies (GENCOs) and PIA so that they will be able to clear PSO's dues,' said sources.
They added that the country's fuel supply chain can face severe problems in case of more delay from the government in release of funds to the defaulters of PSO.
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 approximately Rs 289 billion, while the second defaulter is the power sector which owes more than Rs 172 billion and receivables from PIA and GoP (Government of Pakistan) stand at Rs 90 billion.
As per details, GENCOs are required to pay above Rs 143 billion, the Hub Power Company (HUBCO) is to pay Rs 21 billion, and the Kot Addu Power Company (KAPCO) is to pay Rs 7 billion. Similarly, the PIA is required to pay Rs billion. Likewise, the government is to pay Price Differential Claims (PDC) amounting to Rs 8.9 billion for the period 1996-2014 and Rs 41.6 billion for the financial year 2022 and Rs 16.7 billion under the head of exchange rate differential on FE 25 loan.
About payables position of state-owned largest oil marketing company (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 Liquefied Natural Gas (LNG) payments have soared to more than Rs 233.64 billion.
Furthermore, the payables to refineries have also increased to above Rs43.5 billion which includes Rs 25.62 billion to Pak Arab Refinery Company (PARCO), Rs 5.98 billion to Pakistan Refinery Limited (PRL), Rs 5.20 billion to National Refinery Limited (NRL), Rs 4.91 billion to Attock Refinery Limited (ARL), and Rs 1.78 billion to ENAR, said sources.
It is relevant to note that Pakistan State Oil (PSO) had earlier expressed its inability to ensure the import of petroleum products for other Oil Marketing Companies (OMCs) in the country.
PSO General Manager (Supply), Asad Faiz, in a letter to the Ministry of Energy (Petroleum Division), had already raised voice against OGRA for suggesting it (PSO) to import petroleum products for other Oil Marketing Companies (OMCs).
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, refuelling 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 feuling the journeys across air, land, and sea for over four decades, and becoming the nation's choice.