Islamabad: On Sunday, the Economic Coordination Committee (ECC) passed a Rs30 billion bailout to steer Pakistan State Oil (PSO) away from the brink of default. PSO has been facing a financial crisis as its receivables have surged to Rs 605 billion. The Rs 30 billion would be generated by imposing additional taxes on the public. ECC has asked the Federal Board of Revenue (FBR) and the finance division to provide a plan to collect Rs 30 billion with the help of taxes in one week.
According to the petroleum division, the sales of PSO high-speed diesel have dropped by 28 per cent while sales of petrol declined by 32 per cent. On the other hand, the devaluation of the rupee has further hiked the procurement cost of petroleum products. The Power Divison has been directed to clear the outstanding payments by August 4, 2022. PSO owes Rs408 billion to Qatar and Kuwait Petroleum Company.
PSO has been facing delays in receiving payments from notable companies. The Sui Northern Gas Pipeline Limited (SNGPL) has to pay Rs 605 billion to PSO, and Pakistan International Airlines has dues of Rs 337 billion. The domestic sector has not transferred payments to SNGPL in the last four winter seasons. SNGPL could not recover the LNG cost as there was no legal framework. Subsequently, the gas company was not able to clear PSO’s payment.
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