Pakistan State Oil (PSO) is undergoing a serious financial crunch as it needs Rs.60 billion urgently to avert a national energy shortage next month.
According to sources, the receivables and payables data show that the Liquified Natural Gas (LNG) sector is most problematic for PSO as Sui Northern Gas Pipeline Limited (SNGPL) has emerged as a top defaulter at the head of the import of LNG as it owes PSO Rs. 278.844 billion. The second biggest defaulter is the power sector which owes the state entity Rs. 167.737 billion.
The PSO has to import 23 fuel cargoes to cater to Pakistan’s energy needs in April, for which it urgently required additional cash of Rs. 60 billion.
A PSO official claimed, “If the said amount is not made available, then PSO will not be able to open new Letters of Credit (LCs)”.
He added that the company had previously planned to import 17 fuel cargoes for April, including seven LNG cargoes, three furnace oil cargoes, and at least six diesel and five motor gasoline cargoes. However, the non-materialization of some previously ordered cargoes had led the government to require more furnace oil to be used for the generation of electricity.
The PSO has asked the federal government to release additional cash of Rs. 60 billion to avert the impending fuel shortage in April, the official said and added that the company is currently undergoing a huge liquidity crisis mainly because of non-payments from SNGPL and the power sector.
Among the power sector entities, power generation companies (GENCOs) are required to pay Rs. 140.866 billion, the Hub Power Company (HUBCO) is to pay Rs. 21.705 billion, and the Kot Addu Power Company (KAPCO) must pay Rs. 5.167 billion.
Pakistan International Airlines (PIA) is the third biggest defaulter that owes PSO Rs. 22.483 billion. Additionally, the latter also needs to be paid price differential claims (PDC) amounting to Rs. 8.934 billion by the government due during the period 1996-2014 and Rs. 12.311 billion again in the head of price differential claims by the government for the financial year 2022 and Rs. 10.6 billion in the head of exchange rate differential on the FE25 loan.
Meanwhile, the PSO’s payables in the heads of the LCs for fuel imports from the Kuwait Petroleum Company (KPC) and the standby letter of credits (SBLC) for the import of LNG payments have soared to Rs. 123.260 billion.
The PSO’s payables towards refineries have also jumped to Rs. 33.641 billion which includes Rs. 18.249 billion to the Pak-Arab Refinery Company (PARCO), Rs. 7.021 billion to Pakistan Refinery Limited (PRL), Rs. 2.082 billion to National Refinery Limited (NRL), Rs. 5.146 billion to Attock Refinery Limited, and Rs. 1.043 billion to ENAR Petrotech.
