ahlam1399
02-10-2017, 10:13 PM
Official warns country running fast
towards financial catastrophe on account of massive surge in circular debt
ISLAMABAD: The receivables of Pakistan State Oil (PSO) have swelled to a whopping Rs277 billion, unfolds the daily receivables and payables position of the oil marketing company as of today (February 9, 2017) of which copy is available with The News.
In order to avert any eco**mic blow, PSO’s management has sought immediate financial solace of over Rs50 billion to make its operations with regard to imports of furnace oil, diesel, jet fuels and more importantly LNG intact and informed the government that its borrowing limits have exhausted and overdraft credit lines have choked.
According to a senior official at the Ministry of Petroleum and Natural Resources, the recoveries of the power sector have slowed down and the subsidies that the Ministry of Finance should release to the Ministry of Water and Power have also lost its pace. And this is the main reason that the Ministry of Water and Power is also unable to pay the dues against current fuel supply to PSO.
Owing to this very reason, the power sector has defaulted on seven days furnace oil credit arrangement which is in place between the Ministry of Water and Power and Ministry of Petroleum and Natural Resources because of failure in payment of Rs33 billion in the head.
“We are running fast towards a financial catastrophe on account of the massive surge in circular debt to Rs277 billion as this has exposed the oil marketing company to extreme danger of eco**mic collapse,” said the official while painting a gloomy picture of the entity’s eco**mic outlook.
The official said, “PSO is in immediate need of over Rs50 billion to offload its financial responsibilities of payments to Kuwait Petroleum and for standby Letter of Credit (LC) for LNG purchasing.
“The power sector continues to emerge as the biggest defaulter of PSO which, according to the daily receivables and payables position of PSO, is needed to pay Rs246.7 billion. Out of the Rs247.6 billion, HUBCO owes to PSO Rs71.9 billion, Gencos Rs142.5 billion, KAPCO Rs24 billion, WPPO Rs7.2 billion, K-Electric Rs0.9 billion and Saba power and Southern Electric Rs0.1 billion.”
More importantly. just in the head of power sector’s inefficiency in paying the huge amount to PSO on time, the national exchequer has been exposed to loss of Rs60.2 billion just in the head of late payment surcharge and that amount will be paid from the taxpayers’ money.
And Pakistan International Airlines (PIA) has to pay Rs 15 billion. “We are trying to contact CFO (Chief Financial ******r) of PIA for resolving the issue of Rs15 billion payment but he is outside of the country.” On top of that Sui **rthern is, as of today, also needed to pay Rs6.6 billion, reveals the daily position of receivables and payables of PSO. And in the head of price differential claim, the government has to pay PSO the amount of Rs9 billion. On account of circular debt, PSO is **w unable to pay the dues of Rs10.9 to refineries.
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towards financial catastrophe on account of massive surge in circular debt
ISLAMABAD: The receivables of Pakistan State Oil (PSO) have swelled to a whopping Rs277 billion, unfolds the daily receivables and payables position of the oil marketing company as of today (February 9, 2017) of which copy is available with The News.
In order to avert any eco**mic blow, PSO’s management has sought immediate financial solace of over Rs50 billion to make its operations with regard to imports of furnace oil, diesel, jet fuels and more importantly LNG intact and informed the government that its borrowing limits have exhausted and overdraft credit lines have choked.
According to a senior official at the Ministry of Petroleum and Natural Resources, the recoveries of the power sector have slowed down and the subsidies that the Ministry of Finance should release to the Ministry of Water and Power have also lost its pace. And this is the main reason that the Ministry of Water and Power is also unable to pay the dues against current fuel supply to PSO.
Owing to this very reason, the power sector has defaulted on seven days furnace oil credit arrangement which is in place between the Ministry of Water and Power and Ministry of Petroleum and Natural Resources because of failure in payment of Rs33 billion in the head.
“We are running fast towards a financial catastrophe on account of the massive surge in circular debt to Rs277 billion as this has exposed the oil marketing company to extreme danger of eco**mic collapse,” said the official while painting a gloomy picture of the entity’s eco**mic outlook.
The official said, “PSO is in immediate need of over Rs50 billion to offload its financial responsibilities of payments to Kuwait Petroleum and for standby Letter of Credit (LC) for LNG purchasing.
“The power sector continues to emerge as the biggest defaulter of PSO which, according to the daily receivables and payables position of PSO, is needed to pay Rs246.7 billion. Out of the Rs247.6 billion, HUBCO owes to PSO Rs71.9 billion, Gencos Rs142.5 billion, KAPCO Rs24 billion, WPPO Rs7.2 billion, K-Electric Rs0.9 billion and Saba power and Southern Electric Rs0.1 billion.”
More importantly. just in the head of power sector’s inefficiency in paying the huge amount to PSO on time, the national exchequer has been exposed to loss of Rs60.2 billion just in the head of late payment surcharge and that amount will be paid from the taxpayers’ money.
And Pakistan International Airlines (PIA) has to pay Rs 15 billion. “We are trying to contact CFO (Chief Financial ******r) of PIA for resolving the issue of Rs15 billion payment but he is outside of the country.” On top of that Sui **rthern is, as of today, also needed to pay Rs6.6 billion, reveals the daily position of receivables and payables of PSO. And in the head of price differential claim, the government has to pay PSO the amount of Rs9 billion. On account of circular debt, PSO is **w unable to pay the dues of Rs10.9 to refineries.
http://feeds.feedburner.com/~r/com/cwEr/~4/gV86Q8jaJ8k
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