PSO gives ultimatum to suspend supply over nonpayment of dues
According to officials, PSO is liable to pay Rs 40 billion to international suppliers and Rs 80 billion to local oil refineries. Volume of PSO circular debt has reached Rs 154 billion including RS 134 billion arrears of power sector. According to PSO officials, Ministry of Petroleum and Ministry of Finance have been informed in this regard but ministries concerned have not yet taken any step to solve the issue.
PSO officials have warned that they will block supply to HUBCO, WAPDA and KEPCO if 50 percent dues are not paid till February 14.
Circular debt: PSO to be paid Rs41.4bn
ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani on Tuesday urged all the stakeholders to honour their commitments made during the energy summit and pay their outstanding dues of electricity to help reduce the circular debt.
The prime minister was chairing a special meeting held here at the Prime Minister”s House to review the circular debt situation arising out of the pending payments to PSO (Pakistan State Oil).
PM Gilani directed the concerned ministries and organizations for closer coordination among all the stakeholders, including the provincial governments within the next few days to resolve the circular debt issue before it leads to any crisis.
The circular debt, he said, be regularly monitored on daily basis and the dues/claims of different organizations including, provincial governments be settled.
The prime minister decided to provide an immediate financial relief to the PSO amounting to Rs. 41.4 billion. The Ministry of Finance would arrange an amount of Rs. 31.4 billion while PEPCO would pay Rs. 10 billion.
Earlier, the Minister for Petroleum and Natural Resources briefed the meeting about gravity of the situation arising out of delay in payments to PSO by various power companies.
The Minister for Water and Power apprised the meeting of delay in payments by the provincial governments as per commitments made during the energy conference.
He also informed of the recoveries made by PEPCO so far from various organizations. He further opined that the issue of circular debt can only be resolved when the gap between the cost of production and the price of electricity is eliminated.
The Minister for Finance assured that the amount due against the Federal Government as per the Energy Summit decision would be cleared within the next few days.
Tahir Basharat Cheema, MD, PEPCO informed that PEPCO would be able to partially clear the PSO”s bills from the recoveries made so far and likely to be made till the end of this month.
The meeting was also attended by Minister of State for Finance and Economic Affairs Ms Hina Rabbani Khar, Secretary Finance, Secretary Water and Power and Additional Secretary Petroleum and Natural Resources.
President accepts resignation of Governor SBP
ISLAMABAD: Governor State Bank of Pakistan (SBP) Syed Saleem Raza tendered his resignation from the office on May 6 due to personal reasons, Geo news reported.
According to official statement issued from President House Camp, the president Zardari has accepted his resignation after a long delay of 27 days.
Deputy Governor SBP Sheikh Yaseen Anwar has been appointed acting Governor in place of Raza, statement further said.
Attock refinery closure imminent on debt woes
ISLAMABAD: The closure of Attock refinery is imminent if circular debt issue could not be resolved, Senate’s standing committee for Petroleum briefed.
Pakistan State Oil (PSO) Managing Director told the committee that PSO would have to pay Rs.123 billion to refineries whereas government has to pay Rs.131 billion to PSO.
MD PSO said if the issue of circular debt could not be resolved, supply of oil to military could be suspended in north region.
The officials of Finance Ministry informed the committee that recovery of PEPCO has been reached to Rs.98 billion and Rs.101 billion has been paid for FATA bills. PEPCO is responsible for circular debt issue, they added. The committee has summoned a joint meeting of petroleum and energy committee on June 9.
Power Units Are Halted Suplly To By All Refineries
Oil refineries have halted the delivery of furnace oil to Power units due to nonpayment. Pakistan State Oil (PSO) is providing imported furnace oil on emergency basis to thermal power units.
According to Ministry of Petroleum, PSO is confronted by a circular debt above Rs 100.4 billion. Power sector is the major defaulter of which Rs 91 billion is due against the power sector. PSO supplies furnace oil worth Rs 1 billion to Power sector on daily basis.
PSO is unable to pay Rs 68 billion to the refiners due to non payment by the Government, consequently Oil refineries have halted furnace supply. PSO is only supplying 19,000 metric tons of furnace oil to Power Production units. The Power units consume 35,000 metric tons of furnace oil everyday.
Power Units Are Halted Suplly To By All Refineries was first posted on March 1, 2010 at 1:45 am.
PSO Facing Rs 77.7 Billion Circular Debt
PSO Facing Rs 77.7 Billion Circular Debt, Senate’s Standing Committee for Petroleum Chairman Sabir Baloch said that PSO is facing circular debt of Rs 77.7 billion. He said that many sectors including power sector may face problems if proper steps are not taken on war footing. He was talking to a meeting of Senate’s Standing Committee for Petroleum Chairman. In the meeting, MD PSO Irfan Qureshi said that different organizations including power sector have to pay Rs 69.6 billion arrears of PSO. Criticizing the WAPDA, Senator Haroon Khan said that proper steps are not being taken to end the circular debt of PSO.
PSO Facing Rs 77.7 Billion Circular Debt was first posted on November 24, 2009 at 3:59 pm.
