ISLAMABAD: State-owned Pakistan State Oil’s (PSO) liquidity crisis has swooped to an all-time high with an unprecedented hike in its receivables to Rs 621.168 billion and payables to Rs 268.5 billion. Situation has resulted in company being unable to offload its liabilities with regard to letters of credit (LCs) amounting to Rs 218.5 billion for import of furnace oil and LNG.

Worrying liquidity crisis has virtually put LNG supply at risk for winter season as receivables and payables of PSO have scaled up to Rs 890 billion, a senior official at Ministry of Energy told. SNGPL has so far committed a default of Rs 393.5 billion towards PSO. Utility also owes PSO Rs 6.758 billion in head of exchange rate loss. Official said worsening liquidity situation of PSO and non-payment of dues from SNGPL has put LNG supply at risk.

Details show that power sector continues to be a defaulter of Rs 176 billion of PSO. GENCOs (Electric Power Generation Companies) and CPPA (Central Power Purchase Agency) owe Rs 146.877 billion whereas HUBCO Rs 24.737 billion and KAPCO Rs 5.932 billion. National flag carrier Pakistan International Airlines has also so far failed to pay Rs 23.750 billion to PSO. 

Published in The Daily National Courier, November, 15 2022

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