Karachi: Pakistan State Oil (PSO) has requested the government to disburse at least PKR 50 billion on immediate basis in order to retire its International Letters of Credit (LCs) and avoid defaults on oil import.
According to Alfalah Securities Limited, PSO has been facing a severe set back due to non-payment of dues from the Independent Power Plants (IPPs) as their total dues have mounted to PKR 155 billion and the oil marketing company would not be in a state to import oil in October if their dues were not cleared by these power plants.
PSO’s dues, if not cleared, would also create a huge demand and supply gap resulting in a severe fuel crisis in the country as PSO would then be able to import oil after three months of payment. The Power sector owes PSO approx. PKR 131 billion out of which, HUBCO owes PKR 67 billion while, KAPCO and Wapda owes PKR 35 billion and PKR 29 billion respectively. Conversely, PSO’s payables to the local refineries have reached PKR 71.18 billion out of which it owes PKR 31.35bn to PARCO, PKR 8.5bn to PRL, PKR 9.16bn to NRL, PKR 17.24bn to ARL, PKR 4.28 billion to Bosicor while remaining PKR 0.53bn to others.