PSO’s outstanding dues 'climb' to Rs 786b

KARACHI: The total outstanding dues of various sectors of Pakistan State Oil (PSO) have climbed to Rs 786 billion, ARY News reported citing sources.

According to sources, 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.

READ: PSO, PARCO and Sui Gas privatization referred to center

Earlier, the decision to privatize major state-owned energy companies, including Pakistan State Oil (PSO), Pak Arab Refinery Company (PARCO), and Sui gas companies, has been deferred to the federal government.

The Petroleum Division submitted a summary to the Cabinet Committee regarding the privatization of PSO, PARCO, and Sui gas companies.

The summary from the Petroleum Division suggested that the federal government should make the final decision regarding the privatization of these entities.

The summary highlights several complexities that need to be addressed in the privatization process.

One key issue raised is the impact on existing LNG deals if PSO is privatized. The summary emphasizes that the government needs to carefully consider the complexities of such a move.