AHMAD AHMADANI ISLAMABAD - Pakistan State Oil (PSO), having receivables over Rs 140 billion, fears default of letter of credits (L/Cs) in oil import that may result in major crisis in oil and power sector of the country, It has been learnt. Pakistan State Oil (PSO) cautioned that default of letter of credits in oil import would also disrupt the entire fuel supply chain across the country. Available copy of a letter revealed that Managing Director PSO, Irfan K Qureshi, requested the ministries of petroleum, finance, and water and power on January 24, In order to avoid an imminent LC default and make payment to local refineries, we request your help for an immediate release of Rs 40 billion to PSO. Your timely and kind intervention will help avert major crisis in the oil and power sector of the country. We wish to draw your urgent attention to the liquidity crisis of PSO which is badly hampering our ability to ensure uninterrupted supply of oil to power sector. Qureshi in its letter clearly said that PSOs receivables had crossed Rs 139 billion due to which it was unable to pay dues to local refineries amounting to Rs 86 billion. He further wrote in the letter, Such consistent default on payment has forced these refineries to reduce their throughput and curtail supplies to PSO. Consequently we have to rely heavily on imported product resulting in drain of countrys foreign exchange. PSOs payables to international supplies had accumulated to Rs 35 billion out of which more than Rs 16 billion was payable within the next seven days, said MD Irfan K Qureshi while adding, We need immediate help to meet our LC commitments for imports which if not cleared on time, will result in disruption of entire supply chain. Furthermore, available document with The Nation reveals, As on January 26, 2011, PSO receivables against different clients stand at; Wapda, Rs 43.8 billion, Hubco, Rs 60.15 billion, Kapco, Rs 22.9 billion, PIA, Rs 526 million, OGDC, Rs 337 million, KESC, Rs 1.78 billion, financial charges from PIA, Rs 960 million, price differential claims (PDC) on High Speed Diesel (HSD), Rs 1.38 billion, and PDC on imported PMG, Rs 4.79 billion. The PSO is to pay Rs 118 billion dues to local as well as international fuel suppliersand the details of that are as follows: Parco, Rs 29.9 billion, PRL, Rs 10.5 billion, NRL, Rs 9.2 billion, ARL, Rs 31.3 billion, and Bosicor, Rs 4.6 billion.