Premier directs immediate release of Rs11b to PSO
Funds to be used for oil imports; committee formed to come up with plan.
PSO’s receivables were Rs114.67 billion on account of outstanding bills of its clients, mainly the energy sector and the company owed Rs22.17 billion to local refineries as of April 4. PHOTO: FILE
ISLAMABAD:
Prime Minister Mir Hazar Khan Khoso directed the finance ministry on Thursday to immediately release Rs11 billion to Pakistan State Oil (PSO), so that it can import fuel for power generation companies in a bid to overcome the looming possibility of severe load shedding in the coming months.
Sources told The Express Tribune that the premier had been informed that PSO required Rs74 billion to arrange furnace oil for the months of April and May.
“We may require Rs37 billion for each month to import furnace oil for power generation,” sources said, adding that the prime minister was further informed that PSO had defaulted on Letters of Credit (L/Cs) issued last month for fuel imports. They maintained that the prime minister directed the immediate release of Rs11 billion demanded last month by PSO to clear the L/Cs.
According to a statement issued here, the decision was taken in a meeting chaired by Prime Minister Justice (retd) Mir Hazar Khan Khoso at the prime minister’s house this afternoon. The meeting was attended by representatives from the ministries of petroleum, water and power and finance; the Water and Power Development Authority; PSO; and senior officials of the Prime Minister’s Secretariat.
A four-member committee has been constituted – comprising representatives of the ministries of water and power, finance and petroleum and chaired by the principal secretary to the prime minister – to review the entire power sector and suggest recommendations so that issues relating to power generation and distribution can be addressed.
Sources said the committee would also work out a plan to arrange the Rs74 billion required by PSO. They said the finance ministry had also asked that the water and power ministry also submit a cash plan to pay money to PSO against supplies of oil for power plants.
The Prime Minister said power is a very critical issue which has a far reaching impact on the economy and the daily life of the people. He directed the committee to come up with concrete recommendations within three days.
The premier also directed the Ministry of Water and Power to increase its operational effectiveness through better supervision and management of available resources, so that the effectiveness of the power sector can be increased.
Published in The Express Tribune, April 5th, 2013.
Like Business on Facebook to stay informed and join in the conversation.
Prime Minister Mir Hazar Khan Khoso directed the finance ministry on Thursday to immediately release Rs11 billion to Pakistan State Oil (PSO), so that it can import fuel for power generation companies in a bid to overcome the looming possibility of severe load shedding in the coming months.
Sources told The Express Tribune that the premier had been informed that PSO required Rs74 billion to arrange furnace oil for the months of April and May.
“We may require Rs37 billion for each month to import furnace oil for power generation,” sources said, adding that the prime minister was further informed that PSO had defaulted on Letters of Credit (L/Cs) issued last month for fuel imports. They maintained that the prime minister directed the immediate release of Rs11 billion demanded last month by PSO to clear the L/Cs.
According to a statement issued here, the decision was taken in a meeting chaired by Prime Minister Justice (retd) Mir Hazar Khan Khoso at the prime minister’s house this afternoon. The meeting was attended by representatives from the ministries of petroleum, water and power and finance; the Water and Power Development Authority; PSO; and senior officials of the Prime Minister’s Secretariat.
A four-member committee has been constituted – comprising representatives of the ministries of water and power, finance and petroleum and chaired by the principal secretary to the prime minister – to review the entire power sector and suggest recommendations so that issues relating to power generation and distribution can be addressed.
Sources said the committee would also work out a plan to arrange the Rs74 billion required by PSO. They said the finance ministry had also asked that the water and power ministry also submit a cash plan to pay money to PSO against supplies of oil for power plants.
The Prime Minister said power is a very critical issue which has a far reaching impact on the economy and the daily life of the people. He directed the committee to come up with concrete recommendations within three days.
The premier also directed the Ministry of Water and Power to increase its operational effectiveness through better supervision and management of available resources, so that the effectiveness of the power sector can be increased.
Published in The Express Tribune, April 5th, 2013.
Like Business on Facebook to stay informed and join in the conversation.