KARACHI: Pakistan State Oil (PSO) facing financial crunch may not continue supplying furnace oil to the power sector, if their dues are not paid, Geo News reported.
Sources said that the ministry of petroleum alarmed at this possibility has sent an urgent memo to the ministries of finance, water and power advising them to make payment to PSO an amount of Rs40 billion.
It is said in the memo that PSO needs to make payment of Rs93 billion to the international suppliers of oil and the letter of credit default could hit the petroleum products’ supply.
Sources said it is further stated in the memo that power sector defaulting payment of Rs800 million per day to PSO, as mere Rs200 million per day are being paid.
The ministries of finance and water and power have been advised immediate release of fund to PSO for averting letter of credit default on the part of PSO.
Sources said that PSO receivables including those from the power sector aggregate to Rs197 billion, while PSO has to pay a total of Rs177 billion to the refineries and international suppliers.