Daily Times

ISLAMABAD: Pakistan State Oil is in intense financial crisis, as four power distribution companies, including WAPDA, have refused to repay their dues and late payment surcharge.

After making efforts to get its dues worth Rs 705 billion, PSO has sought help from the Ministry of Petroleum for coming out the crisis. At least 15 meetings were held between the high officials of PSO and power distribution companies for the payment of dues and surcharge, but all the sessions failed to reach any conclusion.

It may be added that out of the total dues of Rs 705 billion, a sum of Rs 555 billion included fresh dues while Rs 150 billion were old dues, which were the liability of distribution companies, but now the matter was in doldrums.

Sources privy to this development said PSO had provided furnace oil to WAPDA at a cost of Rs 308 billion from February 7, 2015 to July 26, 2016. However, only Rs 293 million were paid to PSO. The sources said that power distribution companies were also facing problems at the hands of line losses, whereas some of the power companies have demanded soft term loans from the government to come out from the crisis.

Sources further disclosed that the federal government failed to recover electricity charges from the provinces. On the other hand, the performance of 24 distribution companies, out of total 26, were not up to the mark, as they failed to recover dues from defaulters.

These companies have also sent bills worth millions of rupees to the consumers to bridge the gap of losses, but public complaints have begun to pour in on large scale. If these companies would not pay the dues to PSO, then it is likely that it might prevent the supply of furnace oil to defaulter companies.