ISLAMABAD: Already stuck in over Rs200 billion circular debt, Pakistan State Oil (PSO) is facing another circular debt after import of liquefied natural gas (LNG).
The PSO imported the 60,000 tons of LNG valuing Rs3.25 billion on April 26, which was mainly financed by Pak-Arab Fertilisers, which only paid the amount of Rs800 million to the state-owned company, while the cost of RLNG that was used by the power sector Kapco and other five power houses has not been recovered.
Meanwhile, power sector has refused to use the RLNG as fuel for power generation on the ground that its supply is erratic and it is not ready to break the furnace oil or diesel chain for the RLNG. The power sector seeks the guaranteed smooth supply of RLNG, which was refused by the Sui Northern as per agreement.
