PSO Waits for Release of Funds Amid Financial Crisis Intensified

Muhammad Haris

Amid a looming financial crunch due to circular debt, state-run oil marketing company Pakistan State Oil (PSO) is still waiting for the release of funds.

Pakistan State Oil sitting in waiting to get funds from the government where recently the authorities assured the release of funds of Rs 30 billion where daily receivables are piling. Govt Decides to Transfer Shares in NandiPur and Guddu Plants to PSO

According to the industry sources companies owe nearly Rs 853 billion of the PSO raising financial crunch where borrowing from the banks has increased substantially raising financial costs.

Sui Northern Gas has to pay around Rs 572 billion against the purchases of LNG. There has been immense pressure on state-controlled entities due to rising circular debt.

Circular debt both gas and energy-related has been increased to Rs 5200 billion.

The power sector has to pay Rs 187 billion to PSO. Gencos gas to pay Rs 152 billion, Hubco Rs 30 billion and Kapco has to pay Rs 4.5 billion.

Continuous debt piling has pushed back PSO to clear its due against oil purchases.

The company has to pay Rs 142 billion of this nearly Rs 101 billion to be paid against LCs and to Kuwait Petroleum.

PSO has to pay around Rs 21.7 billion to PARCO, Rs 8.3 billion to Pakistan Refinery, and Rs 6.8 billion to Attock Refinery