PSO will default if Rs60b not released: MD
The Managing Director of PSO said the PSO would be a defaulter soon if Rs60b outstanding dues were not provided.
The Managing Director of Pakistan State Oil (PSO), Irfan Qureshi, has informed the Special Committee of the Public Accounts Committee (PAC) that the PSO would be a defaulter soon, if Rs60 billion outstanding dues were not provided to it.
The committee was informed that only three days of motor gasoline stock has been left with the PSO.
Expressing strong reservations about deregulation of oil prices, members of the committee urged that only the interest of investors and companies should not be kept in mind.
Qureshi told the committee that PSO has to recover Rs116 billion from various power companies and has to pay Rs81 billion to oil refineries. He said that PSO has stock of diesel for 10 to 11 days only.
Officials of the Oil and Gas Development Company Limited (OGDCL) told the committee that OGDCL has to recover Rs80 billion from different companies.
The committee was informed that Rs40 billion has to be recovered from five refineries, Rs35 billion from Sui Northern Gas Pipelines and other departments while Rs5 billion has to be recovered from power generation companies.
Managing Director of Sui Northern Gas Pipelines, Rasheed Lone, told the committee that the company is running in profit but it is showing losses because it could not make recoveries. He said that in 2009, Sui Northern achieved a profit of Rs930 million and had to recover Rs15.8 billion from consumers under the head of security.
The Managing Director of Pak-Arab Refinery Company (Parco) told the committee that Parco has taken loans of Rs36 billion while PSO has to pay Rs34 billion to the refinery.
Secretary petroleum said that Pepco produces electricity worth Rs40 billion monthly but recovers only Rs37 billion from consumers.
Published in The Express Tribune, July 15th, 2010.
The committee was informed that only three days of motor gasoline stock has been left with the PSO.
Expressing strong reservations about deregulation of oil prices, members of the committee urged that only the interest of investors and companies should not be kept in mind.
Qureshi told the committee that PSO has to recover Rs116 billion from various power companies and has to pay Rs81 billion to oil refineries. He said that PSO has stock of diesel for 10 to 11 days only.
Officials of the Oil and Gas Development Company Limited (OGDCL) told the committee that OGDCL has to recover Rs80 billion from different companies.
The committee was informed that Rs40 billion has to be recovered from five refineries, Rs35 billion from Sui Northern Gas Pipelines and other departments while Rs5 billion has to be recovered from power generation companies.
Managing Director of Sui Northern Gas Pipelines, Rasheed Lone, told the committee that the company is running in profit but it is showing losses because it could not make recoveries. He said that in 2009, Sui Northern achieved a profit of Rs930 million and had to recover Rs15.8 billion from consumers under the head of security.
The Managing Director of Pak-Arab Refinery Company (Parco) told the committee that Parco has taken loans of Rs36 billion while PSO has to pay Rs34 billion to the refinery.
Secretary petroleum said that Pepco produces electricity worth Rs40 billion monthly but recovers only Rs37 billion from consumers.
Published in The Express Tribune, July 15th, 2010.