ISLAMABAD - Pakistan State Oil (PSO) has asked the government to release Rs30 billion immediately, to meet its payment obligation and avoid any untoward situation, as the company receivable to the power companies reaches to Rs219.4 billion.

Besides, there is overdue receivable of Rs5 billion to the gas utility company Sui Northern Gas Pipeline Limited (SNGPL) by the PSO for the supply of Liquefied Natural Gas (LNG), official sources told The Nation here. Despite default of the power sector against payment commitment, PSO is continuously supplying furnace oil to the power sector and the overdue reciveable has reached to Rs219.4 billion, the source said.

In a letter to the Ministry of petroleum and Natural Resources, PSO said, “During next few days PSO has to make international L/C payments worth Rs18 billion while Rs10 billion will become due towards local refineries. However, due to the huge outstanding receivables, PSO is under severe liquidity crunch and has utilised its borrowing line to the maximum.”

Keeping in view the gravity of the situation, it is requested that matter should taken up with the Ministry of Water and Power and the Ministry of Finance for immediate allocation of Rs30 billion to PSO, the letter added. The payment will enable PSO to meet its payment obligation and avoid any untoward situation.

The source said that this is not for the first time that the letter has been written but the state-owned oil company has time and again knocked at the doors of Ministry of Petroleum, Water and Power and Finance and sought its support to resolve the issue of receivables. Recently, in a meeting with the Ministry of Water and Power, it was ensured that significant amount will be paid once the Ministry of Finance releases the subsidy to Ministry of Water and Power. However, no payment was made so far, the source confirmed.

In a latest attempt, PSO has written a letter to the Ministry of petroleum and Natural Resources asking them to help them getting its receivable from the Ministry of Water. Giving the details of the receivable, the letter said that total receivable from power sector is Rs219.4 billion and the receivable of gas utility company is Rs 5 billion.

From the power sector, the letter revealed that opening overdue receivable balance, as on February 6, 2015, was Rs131 billion, the default amount since February 2015-December 2016 is 32.4 billion. Total overdue receivable from power sector as of December 27, 2016 was 163.4 billion and the Late Payment Surcharge (LPS) is Rs56 billion. Thus the total receivable from power sector as of December 2016 is Rs219.4 billion.

Similarly, overdue receivable from Sui Northern Gas Pipeline Limited (SNGPL) against the supply of Liquefied Natural Gas supplies (LNG) is Rs5 billion. It is pertinent to mention here that PSO imports approximately 200 vessels of POL products annually, amounting to around six billion dollars.