PSO had decided to take measures to avoid a financial default including the gradual curtailment of supplies on credit terms to the power sector. ILLUSTRATION: JAMAL KHURSHID
The oil marketing giant, Pakistan State Oil (PSO), convened an emergency meeting to discuss the grave financial situation faced by the company, said a press statement. The financial crunch arose due to the lack of payments by the power sector for the furnace oil, which was supplied to them on credit terms.
PSO required Rs51 billion to retire its letter of credits this month, however, despite various commitments by the Ministry for Water and Power only Rs13 billion had been so far paid, leaving a deficit of Rs37 billion for the current month.
Therefore, PSO had decided to take measures to avoid a financial default including the gradual curtailment of supplies on credit terms to the power sector, however, power producers who pay in cash will not be affected.
Published in The Express Tribune, February 15th, 2013.
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It is pure non-competence and mismanagement on the part of PSO management. A recently promoted group close with minister, with vested interest, is driving the show and ruining the fundamentals of the company. Minister is using the company, pso, as tissue paper.
don't blame the Govt alone the incompetence of PSO management is to be blamed primarily! in order to please their bosses they are willing to do anything, their prime concern is their on gain.SAD.
Democracy is the best revenge.
It has been reported that PSO doesn't even have the resources now to pay its employees for this month, unless the govt releases the funds. Sad to see a great company ruined like this.