PSO Outstanding Dues: PIA And Pepco Given Tuesday Deadline For Payment

Monday, August 11, 2008 at 12:54 pm

ISLAMABAD:The Ministry of Petroleum and Natural Resources (MP&NR) has set the deadline of Tuesday evening for Pakistan International Airline (PIA) and Pakistan Electric Power Company (Pepco) to clear Pakistan State Oil (PSO) outstanding dues, and has conveyed to these entities, in writing, that failure on their part to clear outstanding amounts could result in suspension of fuel supply to them.

Sources said that on behalf of PSO, the MP&NR wrote a letter to PIA and Pepco chiefs on Saturday last that the outstanding dues of their entities were making it difficult for PSO to meet financial liabilities, and in opening letter of credit LC for buying fuel from international suppliers.

The heads of PIA and Pepco have been conveyed in clear terms that any delay in clearance of the dues could result in financial collapse of PSO.

The letter said: “The ministry is seriously concerned over delay in payments to PSO by PIA and Pepco and demands forcefully clearance of dues before Tuesday evening. The ministry In any case can not let PSO collapse due to fault of public sector entities such as PIA and Pepco”.

Sources said that PSO’s outstanding dues against PIA, as on August 9, stood at Rs 3.5 billion. Pepco, however, is a major PSO defaulter. It has not paid Rs 21 billion despite repeated PSO calls for early payment during last few weeks.

PSO took the matter with MP&NR, in writing, on Friday last, saying that it was not in a position to open LC for any shipment to buy fuel and ensure timely supply to its bulk buyers. It, in particular, mentioned in the letter that delay in payment by PIA and Pepco was creating a financial crisis-like situation and making next to possible for it to keep supply to the bulk buyers intact.

In addition to serving notices to PIA and Pepco, two major bulk buyers of fuel from state-owned oil marketing company, PSO, the MP&NR has also taken up the matter with the Ministry of Finance (MoF) for clearing Rs 30 billion from outstanding price differential claim (PDC) on top priority to reduce the growing pressure on PSO in buying more shipments of oil. MP&NR has demanded of MoF that it should release PDC without any further delay to help PSO come out of the financial crisis.

PSO Outstanding Dues: PIA And Pepco Given Tuesday Deadline For Payment

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