PSO circular debt, claims Rs 328 billion from various companies

Pakistan State Oil (PSO), the Karachi based state-owned petroleum corporation, claims Rs 328 billion in debt from various companies. The oil marketing giant is on the verge of a default due to such high receivables from various companies.

According to sources close to the matter, the power sector alone accounts for close to Rs 280 billion in debt to PSO, with GENCOs owing close to Rs 157 billion, HUBCO owning Rs 75 billion and KAPCO Rs 46 billion. In addition, the state-owned Pakistan International Airlines (PIAC) has to pay around Rs 16.8 billion to PSO.

PSO, on the other hand, owes Rs 19 billion to refineries, and Rs 62 billion for LNG imports, including payments to Kuwait Petroleum Corporation.

According to local media sources, the Economic Coordination Committee of the cabinet that is meeting on Wednesday is expected to approve a bailout of Rs 60 billion for the state-run PSO, thus giving it a lifeline in short run.