Pakistan State Oil (PSO) receivables from power sector are Rs186 billion, according to Managing Director Amjad Pervaiz Janjua.
“Actually it is a unilateral buildup and not a circular debt that has piled up and may affect some future projects of the company if not cleared for long,” said Mr Janjua at a corporate briefing arranged by the Lahore Stock Exchange yesterday
Under the agreement with private power producers, it was not mandatory for PSO to supply oil on credit.
“The agreement says the private power producers would pay in advance and then get oil shipments, but the PSO is bearing the burden in the national interest by purchasing oil from its own resources and then supplying it on credit to various sectors,” said Mr Janjua.
The situation has started improving as power producers have joined hands with the PSO to get the receivables cleared.
