Updated on
Summary
Pakistan State Oil circular debt has exceeded 107 billion, the largest oil marketing company has expressed it concerns over the issue.In a meeting with the officials of petroleum ministry and the finance ministry and the PSO management, the circular debt had been caused because of mismanagement and recovery problems by Pakistan Electric Power Company (Pepco).The PSO has asked the government to separate the electricity sector from the oil and gas sector to resolve the lingering issue of circular debt.The PSO stated it had to receive a total of Rs40 billion from Wapda, Rs37 billion from Pepco, Rs18 billion from Kapco.The PSO had to pay Rs76 billion to different refineries in the country and the payments due on April 26 to Kuwait Petroleum Company amounts to Rs13 billion.The PSO letter added that the refineries were facing serious financial problems in clearing their dues to Oil and Gas Development Company (OGDCL).The PSO said that its major receivables amounting to Rs70.61 billion stood against the electricity generation companies, which are faced with payment problems from the electricity distribution companies.PSO has suggested to the finance ministry that Rs70.61 be shifted to the power holding company of the government and the books of oil and gas sector may be cleared.The power holding company may deal with the power sector independently without incurring financial loss to the oil and gas sector, sources said.The ministry of water and power is planning to launch an aggressive campaign to improve recovery drive by the eight electricity distribution companies.
