Beleagured PSO still awaiting govt funds

Pledged Rs30b remains in the pipeline.

KARACHI: More than a week after assurances from the finance ministry, Pakistan State Oil (PSO) is still awaiting the release of Rs30 billion to restrict its mounting inter-corporate debt.

An official summary sent by PSO to the federal Ministry of Water and Power and the Ministry of Petroleum and Natural Resources on Tuesday, showed that outstanding receivables of the company have surged beyond Rs164 billion.

On February 21, PSO was assured that Rs30 billion would be released to Pakistan Electric Power Company (Pepco) so it may clear dues owed by the power sector to the oil marketing company. The assurance was given after a request by the PSO management for the release of Rs80 billion to help curb the rising inter-corporate debt.

“Since last week, repeated requests for clarity on the release of payments have received vague responses,” a company official, requesting anonymity, told The Express Tribune.

Outstanding dues from Hub Power Company (Hubco) stood at Rs70.587 billion on Tuesday, while the Water and Power Development Authority (Wapda) owed Rs50.617 billion to PSO, according to the summary.

The delay in release of payments will likely squeeze the company’s liquidity as its own liabilities, worth Rs41.403 billion, are to mature in coming days.

Published in The Express Tribune, March 2^nd, 2011.