Pakistan State Oil in severe financial crunch: Report

Pakistan State Oil in severe financial crunch: Report

ISLAMABAD - Pakistan State Oil (PSO) is in a financial crunch as PSO’s receivables are set to have surpassed a record Rs364 billion, whereas its payables have reached Rs265 billion as of 18th January, reports *Dawn.*

And adding to the financial misery of the energy sector is the addition of second-tier circular debt of Rs51 billion due to non-payment of LNG supplies to Sui Northern Gas Pipelines Limited (SNGPL).

State-owned Pakistan International Airlines (PIA) owes Rs48 billion to PSO and the federal government on account of price differential claims and exchange rate loss.

PSO, which is Pakistan’s biggest fuel supplier has been repeatedly requesting the finance and petroleum division for the disbursement of at least Rs100 billion to ensure smooth provision of LNG and other petroleum products.

And letters of credit to foreign suppliers worth Rs43 billion have become due and Rs15 billion to domestic refineries.

According to an official, the government is asking PSO for ordering LNG cargoes during low tide season..