KARACHI: Pakistan State Oil (PSO) is facing turbulent situation as its receivables have once again rose to the alarming level of Rs 246 billion as on August 28, 2012, sources said.
They said the country’s largest oil marketing company is in trouble to run its businesses due to shortage of cash.
According to the current figures, the PSO’s receivables from Wapda have increased to Rs 64.314 million as on August 28, 2012 and from Hubco this figure is higher at Rs 110.326 billion. The PSO’s receivables from Kapco have increased to Rs 38.303 billion, From PIA Rs 2.170 billion, from KESC Rs 10.738 billion, from IPPs Rs 6.612 billion and from Pakistan Railways Rs 1.377 billion.
Due to increasing receivables, PSO is unable to make timely payments to refineries and apparently its payables have also increased to Rs 193.354 billion as on the above mentioned date.
The PSO’s payables to Parco have increased to Rs 29.073 billion, to PRL Rs 17.868 billion, to NRL Rs 10.040 billion, to ARL Rs 32.879 billion, Bosicor Rs 3.736 billion and to others Rs 1.116 billion while LC payments to KPC and Fuel Oil Suppliers have increased to Rs 98.642 billion.
The PSO’s receivables are continuously increasing and on the other hand, being the state-run company, the PSO has to continue its supplies to power generation plants and public sector companies such as PIA and Pakistan Railways, sources added.
During the period of last two months (July-August 2012), PSO had supplied 1.16 million MTs furnace oil to the power sector. “The furnace oil supplies made by PSO during last two months were worth Rs 91.81 billion,” sources said. PSO had received only Rs 65.45 billion against these payments and Rs 26.36 billion are still receivables in the mentioned period, they added.
During the period from December 2011 to August 2012, PSO had supplied furnace oil to power sector worth Rs 311.7 billion and it received only Rs 201.4 billion and remaining Rs 110.3 billion are still receivables.
Sources said the increasing circular debt issue is not only affecting performance of oil, gas and power sector companies but also affecting overall economic activities and productivity in the country.