PSO Received Rs 293 Bln Payment Against Rs 308 Bln Supplies In 16 Months: Ministry

ISLAMABAD, (UrduPoint / Pakistan Point News - 3rd Augst,2016) : The Pakistan State Oil (PSO) has received Rs 293 billion payment against supplies amounting to Rs 308 billion made to different power sector entities during last 16 months. "The government is making all-out efforts to avoid further accumulatation of the PSO receivables, which are around Rs 146 billion," official sources in the Ministry of Petroleum and Natural Resources told APP Wednesday. They informed that the balance of circular debt, which was at Rs 181 billion at the start of January 2015, had been reduced to Rs 146 billion after the government injected Rs 40 billion on behalf of the power sector entities.

Besides, the government evolved an effective strategy to ensure payments against the furnance oil supplies to the PSO within seven days aimed at avoiding further accumulation of the circular debt. Commenting on the PSO's receivables, they said in addition to the outstanding amount, the PSO had the price differential claims of Rs 9.6 billion against the government and late payment charges claims of Rs 55.5 billion against WAPDA, HUBCO and KAPCO. The sources said WAPDA/PEPCO owed Rs 104.30 billion, HUBCO Rs 39.5 billion, Rs KAPCO 2.4 billion and Saba Power Southern Electric Rs 0.4 billion.