ISLAMABAD: The Pakistan State Oil (PSO) reported to have accrued as much as Rs782 billion in cumulative circular debt, landing itself in acute payment crisis alongside twin circular debts of electricity and gas sectors.
According to sources, the PSO has yet to receive a staggering amount of Rs782 billion – Rs472 billion principal amount and Rs309 billion late payment surcharge.
These figures contradict the estimates shared by the Petroleum Division which allegedly provided tampered details of debts facing the PSO.
During a recent meeting with the National Assembly committee, the Petroleum Division said the PSO had Rs516 billion in debts when asked about the details of the seemingly insurmountable debt faced by the national oil distribution company.
Sources told that the Sui Northern Gas Pipelines Limited (SNGPL) had to clear Rs497 billion of the PSO.
In addition, the national grid stations and Central Power Purchasing Agency (CPPA) was defaulting on Rs156 billion of the PSO whereas the national flag carrier Pakistan International Airlines (PIA) had to pay Rs29.24 billion to the PSO.
The Hub Power Company Limited (HUBCO) was also running short on a payment amounting more than Rs29 billion.
Meanwhile, the PSO had also written a letter to the Ministry of Finance in which it expressed its predicament of facing huge trouble in opening the Letter of Credit (LC).
GOVT’S EFFORTS OF PRIVATISATING LOSS-MAKING SOEs
It must be noted that soon after taking up the reins of the government, the Pakistan Muslim League-Nawaz (PML-N) expedited its efforts to sell most of the state-owned enterprises.
Various meetings were held by the relevant authorities of the government to sell the family silver including the PIA, Pakistan Railways and all three major airports of the country.
The state-owned enterprises are heavily debt-ridden which made the federal government mull over privatisation of these entities after getting satisfactory prices from the bidders.
The bidding process in this regard is yet to start
