According to The Nation, Ministry of Petroleum and Natural Resources, in a letter to recently elected Prime Minister Raja Pervaiz Ashraf, has immediately sought grant of Rs 1,200 Crore on daily basis to save cash-starved Pakistan State Oil (PSO) from bankruptcy, which is expected within a week if amount not provided.
In the letter it has been requested to the PM to grant Rs 5,000 Crore (Rs 500 billion) to the PSO on immediate basis. If this amount is not provided then the PSO will face bankruptcy within seven days because the circular debt of the PSO has crossed the alarming figure of Rs 500 billion. Put in other words, viewing present situation, Rs 1,200 Crore on daily basis is needed for PSO.
It was also learn that owing to the bankruptcy of the PSO, the supply of furnace oil to the power sector would witness a decrease by notable margin, which would also cause a decline in the power generation by 5,000MW.
Currently, PSO is supplying 28,000 tons on daily basis to the power sector. Besides, supply of petroleum oil and lubricants (POL) products in the country would also be disturbed horribly. Consequently, PSO would not purchase POL products from the international oil market.
It is worth mentioning here that financial matters leading to the bankruptcy of the PSO have now met with a worse situation owing to the disapproval of Law Ministry over floating the term finance certificates (TFCs) of Oil and Gas Development Company Limited (OGDCL).
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