Pakistan State Oil (PSO) has huge liabilities in terms of Late Payment Surcharge, as it has to receive Rs. 87.4 billion from different departments. This was revealed by audit officials in Public Accounts Committee (PAC) meeting.
The audit officials further stated that Water and Power Development Authority (WAPDA) has arrears of Rs. 41.8 billion. Hub Power Company Limited (HUBCO) owes Rs. 25 billion, while Kot Addu Power Company (KAPCO) owes Rs. 16.6 billion, the officials added.
Secretary to the Ministry of Power, while briefing the PAC, highlighted that Rs. 19 billion have been paid so far to PSO under the late payment surcharge. Alongside, the government has made an additional payment of Rs. 33 billion to the PSO as well, he added.
He further apprised the committee that circular debt is Rs. 2.6 trillion at present, while during last four years; it has increased by Rs. 1.6 trillion. He informed the participants that expensive imported fuel is causing costlier power generation, owing to which the government has decided that no future imported fuel-based power plants will be installed in the country.
PAC was also informed that Managing Director PSO has a salary package of Rs. 3.2 million, while the basic Salary of MD Sui Northern Gas Pipeline Ltd. (SNGPL) is Rs. 3.7 million.
Chairman PAC Noor Alam Khan, while highlighting the poor quality of petrol and diesel at PSO pumps, stated that the higher price of petrol and diesel is being charged from the people.
