PSO faces financial crisis as receivables reach Rs. 800bn

ISLAMABAD: Pakistan State Oil (PSO) is grappling with a severe financial crisis, with total receivables ballooning to Rs. 800 billion, ARY News reported.

The company’s profitability has been severely impacted by the financial crisis, with the largest share of receivables has to be paid by the Sui Northern Gas Pipelines Limited (SNGPL).

The sources said that the SNGPL owes PSO Rs. 515.28 billion, while the Hub Power Company Limited (Hubco) has to pay Rs. 14.80 billion to it.

According to sources the energy Sector owes PSO Rs. 189 billion, and Pakistan International Airlines owes Rs. 29.25 billion.

The sources said that the PSO also owes payments to local refineries for imported petroleum products. The PSO has also sought Rs. 50 billion from different ministries.

Earlier in September, it was reported that the import bill for RNLG (Re-gasified Liquefied Natural Gas) has surpassed Rs 506 billion, while Sui Northern Gas Pipelines Limited (SNGPL) owes PSO Rs 506 billion for LNG supply.

The power sector’s dues have also crossed Rs 186 billion, adding to PSO’s financial woes. whereas, Pakistan International Airlines (PIA) owes PSO Rs 28.75 billion.

The drop in of the rupee rate has resulted in an additional burden of Rs 88.84 billion on the government. Despite the massive outstanding dues, only Rs 10 billion has been paid to PSO in the past month, sources revealed.