MABAD - Incumbent government is not taking plausible measures to pull out public sector entities from crisis; running into pitiable financial situation for last many years as PSO receivables has been touching over Rs153 billion.
Despite receivables to the tune of Rs153 billion, Pakistan State Oil (PSO) is running its operations round-the-clock to serve the power sector as per directions of the government of Pakistan official sources told on the condition of anonymity while adding that Pakistan Railways almost at the end of every month showing empty hands ask for diesel to PSO.
When contacted PSO spokesperson, she said PSO is fulfilling all agreements with power sector and is continuing with supplies. The company has adequate levels of furnace oil stocks to manage all energy needs of the nation. However, this public sector entity is required to supply approx 19,000 mts on credit and 8,000 mts on cash to the Independent Power Producers (IPPS). She further said PSO is fulfilling all agreements of the concerned authorities and is supplying approx 20,000 mts to power sector daily on credit terms. She, however, deplored that Hubco is given 8,000 mts, kesc 2,000 mts, Genco1,2,3 7,000 mts and kapco 3,000 mts. The other 7,000 mts that is supposed to be taken from PSO on cash on daily basis and Pepco is not being able to make the cash payments as per agreement, therefore 7,000 mts of product is not being supplied. Pepco should not be blaming PSO for own inefficiency/ non-payments/ violation of the agreements. It may be recalled here that despite a heavy payment pending of Rs 900 million and dishonouring of cheques, the cash strapped Pakistan State Oil (PSO) has continued diesel supply to run the system of ever-sinking Pakistan Railways (PR).
Earlier, spokesperson of PSO informed that it had provided one million litres (10 lakh litres) diesel to Pakistan Railways considering national and common mans interest.
'Pakistan Railways owes us Rs 900 million and they need somehow to manage their finances and pay the fuel supplier, the she added. Furthermore, according to available break-up, several cheques issued by Pakistan Railways to PSO have been dishonoured due to insufficient funds since Dec 2010 worth Rs 1,151,119,128 and cheques in hand till March 11th worth Rs 239,133,087. In this way, total outstanding against credit supplies was Rs 761,787,769.
Reportedly the public sector entities are facing serious financial crunch as receivables of these entities are soaring day by day resultantly the power sector could face fuel supply suspension and the nation might have faced major power outages if PSO had not paid receivables against credit supplies of fuel.
Similarly official sources were of the view that Such consistent default on payment has forced the fuel oil suppliers to reduce their throughput and curtail supplies to PSO. Consequently, we have to rely heavily on imported product resulting in drain of countrys foreign exchange, sources added. According to the liabilities of PSO, the payable to local refineries and fuel oil suppliers are Rs 145,022 million, which have increasing trend requiring the immediate and serious attention of the government to avert the financial crisis being faced by the public sector entities of the country.