Karachi, September 06, 2024: The outstanding dues owed to Pakistan State Oil (PSO) by various sectors have surged to Rs786 billion.
Sources reveal that the import bill for Re-gasified Liquefied Natural Gas (RNLG) alone has exceeded Rs506 billion, with Sui Northern Gas Pipelines Limited (SNGPL) responsible for the entire amount owed for LNG supply.
The power sector’s debt to PSO has also surpassed Rs186 billion, further straining the company’s finances. Meanwhile, Pakistan International Airlines (PIA) owes PSO Rs28.75 billion. The depreciation of the rupee has imposed an additional burden of Rs88.84 billion on the government.
Despite these substantial outstanding dues, PSO has received only Rs10 billion in payments over the past month, according to sources.
Previously, the decision to privatize major state-owned energy companies, including Pakistan State Oil (PSO), Pak Arab Refinery Company (PARCO), and Sui gas companies, was deferred to the federal government.
The Petroleum Division had submitted a summary to the Cabinet Committee regarding the privatization of these entities, suggesting that the federal government should make the final decision.
The summary highlighted several complexities in the privatization process, particularly the potential impact on existing LNG deals if PSO is privatized. The summary stressed the need for the government to carefully consider these complexities before moving forward with any privatization efforts.
