ISLAMABAD: The state-owned electric generation companies (GENCOs) have defaulted on payment of Pakistan State Oil (PSO) by Rs131.581 billion with Sui Northern Gas Pipelines Limited (SNGPL) also failing to clear the LNG payments of Rs107.093 billion.
Pakistan International Airlines (PIA) is not behind in the race as it has so far defaulted on payment of Rs20.802 billion, unfolds the financial daily position of the Pakistan State Oil as of January 19, 2021 available with The News. Moreover, HUBCO and KAPCO owe PSO Rs65 billion.
The data about the daily financial position of the state-owned entity also shows that receivables of PSO have jacked up to Rs333.730 billion, putting the entity in hot waters making it unable to smoothly run its operations.
In the wake of the circular debt in the power sector that currently hovers at Rs2.4 billion, the receivables of PSO have surged to an alarmingly high level of Rs334 billion. The non-payment by the power sector, SNGPL and PIA have squeezed the financial supply to PSO, making it unable to pay Rs53.3 billion to the Kuwait Petroleum Company (KPC) on opening and maintaining letter of credits (LCs) and also on Stand By Letter of Credit (SLBC) for LNG imports.
The data says that the SNGPL’s payables to PSO have surged to over Rs107 billion. Now PSO is facing economic miseries to maintain letter of credits (L/Cs) for ensuring smooth import of LNG.
The Sui Northern has so far failed to recover Rs78 billion for the LNG injected into the domestic sector in Punjab and KP in the last two winter seasons. And in the ongoing winter season, the LNG valued at more than Rs40 billion will be diverted to the domestic sector and in toto the loss to Sui Northern will stand up to Rs118 billion. Because of non-recovery from domestic consumers, Sui Northern is not able to pay to PSO the amount of over Rs107 billion.
On the other hand, the payables by PSO to six refineries have increased to over Rs53 billion, showing that the state-owned OMC (oil marketing company) is unable to pay the said amount because of the liquidity crisis.
As per the data, PSO needs to pay to PARCO (Pak-Arab Refinery Company) Rs10.113 billion, PRL (Pakistan Refinery Limited) Rs4.018 billion, NRL (National Refinery Limited) Rs1.472 billion, ARL (Attock Refinery Limited) Rs2.492 billion, BYCO Rs1.216 billion and ENAR Rs1.470 billion.