Pakistan State Oil (PSO) has reached out to the Power Division seeking assistance in recovering a long-pending amount of Rs30.8 billion from Hub Power Company (Hubco), according to reliable sources. The outstanding amount pertains to Residual Fuel Oil (RFO) supplies made by PSO to Hubco over a considerable period.
As of February 26, 2024, the total outstanding amount, including Late Payment Surcharge (LPS), has escalated to Rs30.8 billion, with the principal amount standing at Rs18.1 billion and the accumulated LPS at Rs12.7 billion.
PSO’s Chief Financial Officer, Gulzar Khoja, highlighted that despite assurances of regular payments from CPPA-G allocated funds, no payments have been made by Hubco since January 25, 2023. Despite PSO’s persistent follow-ups with Hubco and CPPA-G, the issue remains unresolved, causing a significant financial strain on PSO’s cash flow.
The delay in payment has particularly affected PSO’s ability to sustain the energy supply chain in the country. PSO has urged the Secretary Power to intervene and prompt Hubco to make immediate payments of the principal amount along with the accrued Late Payment Surcharge.
As of February 24, 2024, PSO’s major receivables amounted to Rs876.868 billion, with dues from the power sector alone reaching Rs187.583 billion. Receivables against Gencos/CPPA-G stood at Rs152.268 billion, with a significant portion overdue. Among these, Hubco’s outstanding amount accounted for Rs30.815 billion.
PSO’s receivables against other entities such as Sui Northern Gas Company Limited (SNGPL), PIA, and the Government of Pakistan were also substantial, underlining the pressing need for timely recovery to ensure the stability of PSO’s operations.
Story by Mushtaq Ghumman
