PSO teeters on the edge of default as circular debt reaches Rs782bn
According to sources, the PSO has yet to receive a staggering amount worth Rs782 billion which includes Rs472 billion principal amount and Rs309 billion late payment surcharge.
These figures contradict with the estimates shared by the Petroleum division which provided tampered details of debts faced by the PSO.
During a recent meeting with the National Assembly committee, the Petroleum division said the PSO had Rs516 billion in debts when asked about the details of the seemingly insurmountable debt faced by the national oil distributing company.
Sources told Dunya News that the Sui Northern Gas Pipeline (SNGPL) had to clear Rs497 billion of the PSO.
In addition, the national grid stations and Central Power Purchasing Agency (CPPA) was defaulting on Rs156 billion of the PSO whereas the national flag carrier, the Pakistan International Airlines (PIA) had to pay Rs29.24 billion to the PSO. The Hub Power Company Limited (HUBCO) was also running short on a payment amounting more than Rs29 billion.
Meanwhile, the PSO had also written a letter to the Ministry of Finance in which it expressed its predicament of facing huge troubles in opening the Letter of Credit (LC).
GOVT’S EFFORTS OF PRIVATISATING LOSS-MAKING SOEs
It must be noted that soon after taking up the reins of the government, the Pakistan Muslim League-Nawaz (PML-N) expedited its efforts to sell most of the state-owned enterprises. Various meetings were held by the relevant authorities of the government to sell the family silver like the PIA, Pakistan Railways and all three major airports of the country.
It is worth mentioning that all aforementioned state-owned enterprises are heavily debt-ridden which made the federal government mull over privatisation of these entities after getting satisfactory prices from the bidders.
The bidding process in this regard is yet to start.