Pakistan State Oil’s (PSO) liabilities have ballooned to Rs. 235.22 billion as unresolved payments to refineries and fuel import orders pile up, according to the latest receivables and payables data of the state-owned entity.
Sui Northern Gas Pipeline Limited (SNGPL) is the biggest defaulter, owing the oil marketing company Rs. 394.338 billion as of December 26, 2022, reported a national daily.
SNGPL is followed by the power sector’s GENCOs and the Central Power Purchase Agency (CPPA), which must offload Rs. 146.536 billion. Then there’s HUBCO which owes Rs. 25 billion, then KAPCO owing Rs. 6 billion, and Pakistan International Airlines (PIA) Rs. 13 billion.
In summary, SNGPL, CPPA/GENCOs, HUBCO, KAPCO, and PIA must also pay Rs. 116.3 billion in late payment surcharge (LPS). According to data, the government of Pakistan owes PSO Rs. 8.9 billion in exchange price differential and Rs. 13.86 billion in exchange rate differential on the FE 25 loan.
PSO must pay refineries Rs. 41.381 billion, which includes Rs. 24.5 billion to PARCO, Rs. 6.15 billion to Pakistan Refinery Limited, Rs. 3.49 billion to National Refinery Limited, Rs. 6.130 billion to Attock Refinery Limited, and Rs. 1.125 billion to ENAR.
PSOs’ receivables have been reduced to some extent by government payments, but they remain on the high side. The entity’s receivables are currently worth Rs. 608 billion.
Pertinently, it has been indicated that PSO’s borrowing limit has already been reached and if the situation persists, the state-run enterprise will be unable to borrow funds to maintain fuel supply in the future. In lieu of the above, PSO must deposit Rs. 193.840 billion for a letter of credit from Kuwait Petroleum and a standby letter of credit for LNG payments.
