ISLAMABAD: Pakistan State Oil (PSO) has received Rs293 billion in payments against supplies amounting to Rs308 billion made to different power sector entities during the last 16 months.
“The government is making all-out efforts to avoid further accumulation of PSO receivables, which are around Rs146 billion,” official sources in the Ministry of Petroleum and Natural Resources told APP Wednesday.
They informed the news agency that the balance of circular debt, which was at Rs181 billion at the start of January 2015, has been reduced to Rs146 billion after the government injected Rs40 billion on behalf of the power sector entities.
Besides, the government evolved an effective strategy to ensure payments against the furnace oil supplies to the PSO within seven days aimed at avoiding further accumulation of the circular debt.
Commenting on the PSO’s receivables, they said in addition to the outstanding amount, the PSO had the price differential claims of Rs9.6 billion against the government and claimed Rs55.5 billion as late payment charges against Wapda, Hubco and Kapco.
Published in The Express Tribune, August 4th, 2016.