The News reported that the Pakistan State Oil has demanded the Ministry of Finance a bailout package, as the company is running short of funds to retire its payment obligations under the letters of credit.

An official said that the current liabilities of the state run oil company stand at PKR 159.345 billion while the company’s receivables hover at PKR 151.887 billion.

A PSO spokesperson said that we have demanded maximum release to be able to pay international suppliers. PSO is short of funds and in a dire need of a bailout package, otherwise the company would default at the international level and oil supply would not be resumed for 6 months.

According to the current position of liabilities received from the company, PSO has to make a total LC payment of PKR 100.535 billion to Kuwait Petroleum Corporation and other suppliers. This amount is not yet due but it would be due shortly. The company’s legal obligations towards local refineries stand at PKR 58.810 billion including PKR 212 million which is not due as yet.

PSO has to pay PKR 24.868 billion to Pak Arab Refinery Company INR 7.301 billion to Pakistan Refinery Limited, PKR 9.435 billion to National Refinery Limited, PKR 12.97 billion to Attock Refinery Limited, INR 3.796 billion to Bosicor and INR 440 million to others.

PSO’s major receivables include PKR 33.031 billion from WAPDA, PKR 62.456 billion from HUBCO, PKR 32.171 billion from KAPCO, PKR 1.828 billion from PIA, PKR 290 million from OGDC, PKR 7.557 billion from KESC and PKR 1.096 billion from Pakistan Railways.

In addition, PSO has to receive PKR 1.382 billion against the audited price differential claim on high speed diesel, PKR 3.407 billion price differentials on fuel oil, PKR 1.358 billion price differentials on motor gasoline and PKR 6.294 billion price differentials under GLMP and NTDC KESC.

(Sourced from www.thenews.com.pk)