Karachi: Wapda has released PkR 5 bn to Pakistan State Oil (PSO) out of the total PkR 29 bn outstanding while, the Sindh government has also stated to pay PkR 4 bn within few days.
According to Alfalah Securities, PSO’s circular debt had reached to a record level of PkR 155 bn due to non-payment of dues from the power sector of up to PkR 131bn and has caused the company to face severe financial distress as it requires immediate release of funds to retire letter of credits (LCs) on oil imports.
PSO had requested the Ministry of Finance (MoF) to release PkR 50 bn on September 26, 2011 however; the ministry has failed to take appropriate actions despite having full knowledge of the issue. PSO’s total liabilities have surpassed PkR 161 bn as compared to PkR 157.095 bn last week owing to the payment of only PkR 8.5 bn out of dues worth PkR 35 bn from the power sector in September. PSO has issued notices to the power companies including Wapda, Kapco and Hubco however, no significant payment have been received yet.