Circular debt: PSO convenes emergency meeting
PSO required Rs51 billion to retire its letter of credits this month.
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
KARACHI:
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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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.
Like Business on Facebook to stay informed and join in the conversation.