ISLAMABAD: The liquidity crisis of state-owned Pakistan State Oil (PSO) has reached an all-time high with outstanding balances rising to Rs 621.168 billion and payables to Rs 268.5 billion, JEE News reported on Monday.
As a result of this situation, the company is unable to meet its obligations in respect of letters of credit (LCs) worth Rs 218.5 billion for import of furnace oil and LNG.
A senior Energy Ministry official told JEE News that the worrisome liquidity crunch has practically jeopardized the supply of LNG during the winter season as the PSO’s dues and liabilities have ballooned to Rs 890 billion.
According to the PSO’s receivables and payables position as of November 9, available with publication, Sui Northern Gas Pipelines Limited (SNGPL) has a huge amount of Rs 400.258 billion towards LNG imports. has come up as non-payment. Big headache for PSO
SNGPL still owes Rs 393.5 billion to PSO. The utility also owes PSO Rs 6.758 billion.
The deteriorating liquidity situation of PSO and non-payment of dues by SNGPL have put LNG supply at risk, the official said.
Meanwhile, according to the official, the PSO warned the Petroleum Division on November 11 that its borrowing limit had already reached the maximum level and if the situation continued, it would freeze future LNG supplies. will not be able to borrow more to maintain
The official also revealed that the PSO wants the intervention of the Petroleum Division to stop the receipts from SNGPL and implement a payment plan for this purpose as earlier SNGPL. The requirement was agreed upon should be strictly met.
This is necessary to cover the expected funding gap during the winter season to ensure uninterrupted supply of LNG and other petroleum products to the country.
He said that the PSO has suggested that a concrete plan should be drawn up to settle the current receivables from Sui Northern and prevent future receivables.
Details show that the power sector is still in default of Rs 176 billion to PSO. GENCOs (Electric Power Generation Companies) and CPPA (Central Power Purchase Agency) owe Rs 146.877 billion while Habco owes Rs 24.737 billion and KAPCO owes Rs 5.932 billion.
The national flag carrier Pakistan International Airlines has also failed to pay Rs 23.750 billion to the PSO so far. However, the PSO is required to pay Rs 8.934 billion towards price differential claims by the Government of Pakistan.
And in terms of exchange rate difference on FE25 loan, PSO also needs to pay Rs 10.680 billion.
Coming to the payment situation, the data shows that PSO also needs to pay Rs 50 billion to the refineries, of which PARCO (Pak Arab Refinery) owes Rs 26.641 billion, PRL. (Pakistan Refinery Limited) includes Rs.9.783 billion. Rs 4.401 billion to NRL (National Refinery Limited), Rs 8.309 billion to ARL (Attack Refinery Limited) and Rs 866 million to ENAR.
The figures show that PSO’s liabilities in respect of LC payments to KPC (Kuwait Petroleum Company) and LNG payments to Qatar have increased to Rs 218.5 billion, bringing total payments to Rs 268.5 Billions have reached
