Pakistan State Oil (PSO) is grappling with a financial crisis as its receivables have surged to a staggering Rs. 802 billion, marking a drastic increase since August 2021 when the figure stood at Rs. 362 billion. The substantial rise in receivables includes a notable increase from a public gas utility, reaching Rs. 519 billion, with Rs. 150.8 billion owed by power generation companies.
Of particular concern are outstanding price differential claims, with Rs. 8.9 billion pending against the government. Major power sector defaulters, such as Hubco and Kapco, further exacerbate the situation, with dues amounting to Rs. 29.5 billion and Rs. 5 billion, respectively.
The struggle to pay pending dues extends to oil refineries, with PSO facing unprecedented levels of payables. The largest fuel supplier in the country owes Rs. 48.8 billion to various refineries, including Rs. 26.6 billion to Parco, Rs. 8.4 billion to Pakistan Refinery Limited, Rs. 4.1 billion to National Refinery Limited, Rs. 6.9 billion to Attock Refinery Limited, Rs. 1.7 billion to Byco, and Rs. 1 billion to Enar.
This financial crunch is impacting PSO’s operational efficiency, reflecting the challenges and financial instability faced by the country’s largest fuel supplier. As liabilities continue to mount, the situation calls for urgent measures to address the outstanding dues and ensure the smooth functioning of PSO’s operations.
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