PSO’s Receivables Soar Above Rs. 600 Billion

The receivables of Pakistan State Oil (PSO) have reached an all-time high of Rs. 605.65 billion, posing serious risks to the country’s fuel supply chain. Sources said that PSO has to make an immediate payment of Rs. 80 billion if its letters of credit (LCs) default. The company has to pay a  total of Rs. 462 billion to domestic refineries and foreign companies. Under LCs an amount of Rs. 408 billion is payable to Kuwait Petroleum, and an amount of Rs. 54 billion to refineries. The receivables from the domestic sector on the provision of liquefied natural gas (LNG) have reached Rs. 344.76 billion, whereas the receivables of the power sector stand at Rs. 183.31 billion. In addition, government institutions also owe Rs. 77.66 billion to the state-owned company. The Central Power Purchasing Agency (CPPA) owes Rs. 149 billion to PSO. Sources say that the oil supply chain may get severely disturbed if the government fails to take action.