PSO’s Receivables Surge to Record High of Rs. 740 Billion

The receivables of Pakistan State Oil (PSO) have touched the highest level of Rs. 740 billion of which Sui Northern Gas Pipeline Limited is the biggest defaulter, owing Rs. 465 billion in pending dues for liquefied natural gas imports. This astounding figure shows that Pakistan’s supposedly biggest energy importer giant is facing a massive financial crunch. Also, Pakistan State Oil is obligated to collect Rs. 179 billion from the power industry in oil supply costs for electricity production. As expected, the main defaulters are generation companies, which must pay Rs. 147.6 billion. Hub Power Company Limited (Hubco) owes Rs. 25.3 billion and Kot Addu Power Company Limited (KAPCO) owes Rs. 5 billion. Pertinently, domestic consumers have not paid their LNG bills due to a lack of a legal framework. Pakistan International Airlines (PIA) is another big-name defaulter because PSO provides jet fuel for its operations. The PIA owes Rs. 25.7 billion. The government is also expected to pay Rs. 8.93 billion to PSO in price differential claims. The other side of the coin shows that PSO owes Rs. 88 billion to oil refineries. The state-owned entity owes the Pak-Arab Refinery Company Rs. 52.9 billion, Pakistan Refinery Limited Rs. 12 billion, National Refinery Limited Rs. 3.2 billion, Attock Refinery Limited Rs. 16.3 billion, and Enar Rs. 2.6 million. PSO further needs to arrange Rs. 228 billion for settling letters of credit, standby letters of credit (SBLC), and Kuwait Petroleum Corporation for LNG payments.