According to the latest receivables and payables data from Pakistan State Oil (PSO), the state-owned entity’s liabilities have risen to Rs. 235.22 billion due to unresolved payments to refineries and fuel import orders.
According to a national daily, Sui Northern Gas Pipeline Limited (SNGPL) is the biggest defaulter, owing the oil marketing company Rs. 394.338 billion as of December 26, 2022.
Following SNGPL are the power sector’s GENCOs and the Central Power Purchase Agency (CPPA), which must offload Rs. 146.536 billion.
HUBCO owes Rs. 25 billion, KAPCO owes Rs. 6 billion, and Pakistan International Airlines (PIA) owes Rs. 13 billion.
In total, SNGPL, CPPA/GENCOs, HUBCO, KAPCO, and PIA must pay a late payment surcharge of Rs. 116.3 billion (LPS).
The government of Pakistan owes PSO Rs. 8.9 billion in exchange price differential and Rs. 13.86 billion in exchange rate differential on the FE 25 loan, according to data.
PSO must pay refineries 41.381 billion rupees, which includes 24.5 billion rupees to PARCO, 6.15 billion rupees to Pakistan Refinery Limited, 3.49 billion rupees to National Refinery Limited, 6.130 billion rupees to Attock Refinery Limited, and 1.125 billion rupees to ENAR.
Government payments have helped to reduce PSO receivables to some extent, but they remain high. Receivables for the company are currently worth Rs. 608 billion.
PSO’s borrowing limit has already been reached, and if the situation continues, the state-run enterprise will be unable to borrow funds to maintain fuel supply in the future.
PSO must deposit Rs. 193.840 billion in lieu of the above for a letter of credit from Kuwait Petroleum and a standby letter of credit for LNG payments.
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