PSO receivables hit Rs757b, faces risk of LC default

Increasing with each passing day, the receivables of Pakistan State Oil have crossed a record Rs757 billion by Monday and the risk of default on PSO’s Letter of Credit (LC) for importing oil has arisen.

 

According to the 24NewsHD TV channel, in its latest report of its financials submitted to the federal government, the total receivables from various entities stood at Rs756.89 bn on the close of Sunday (November 5).

 

PSO has demanded the government for Rs80 billion for a Letter of Credit (LC) because if the LC defaults then the import of oil would be affected.

 

The country’s largest fuel supplier further reported that almost 90 percent of its funds had been stuck up with the government entities led by Sui Northern Gas Pipelines Ltd (SNGPL) with a backlog of about Rs485 billion. The SNGPL has to pay the amount to PSO on account of LNG supply.

 

Power generation companies are the major defaulters that have to pay Rs150 billion to PSO on account of oil supply for electricity generation.

 

PSO has to collect Rs 173 billion as a late payment surcharge. The government of Pakistan owes PSO 95 billion rupees.

 

PIA has to pay Rs 26.91 billion to the PSO.

 

Reporter: Awais Kiyani