ISLAMABAD: As the state-run oil marketing company, Pakistan State Oil (PSO), persistently slips towards financial collapse due to all-time high receivables, the government is likely to release a minuscule amount for the circular debt.
According to officials familiar with the development, the Ministry of Finance has agreed to provide Rs45 billion for energy companies to ease the burden of circular debt. However, PSO, whose receivables have crossed Rs300 billion, is likely to receive only Rs10 billion for onward payment to fuel suppliers. The remaining amount will go to Independent Power Producers (IPPs).
Prime Minister Nawaz Sharif has held several meetings with the Cabinet Committee on Energy to resolve the power crisis. However, the issue still persists along with the circular debt, which is mounting with the passage of time. The debt has exceeded Rs400 billion once again.
PSO’s receivables from the power sector, Sui Northern Gas Pipelines Limited (SNGPL) and Pakistan International Airlines (PIA) have reached Rs300.8 billion because of delay in payment of dues mainly by power producers.