PSO likely to get Rs 10 billion today

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KARACHI: Pakistan State Oil (PSO) is likely to get Rs 10 billion from the government to avert crisis of oil supplies operations on temporary basis, an official told Daily Times.

The government instructed central bank to disburse an amount to PSO on Thursday however the amount did not transfer to the accounts of Company today and likely to be done on Friday (today), he mentioned. He said the PSO got opening of Letter of Credit (LC) from a private bank today, which would help slightly the companies to streamline its operators for few weeks.

However there is a need of additional Rs 37 billion for companies to avoid possible-crisis situation oil supplies in the coming weeks, he added Naeem Yahaya Mir CEO and MD PSO convened an emergency meeting to discuss the grave financial situation currently being faced by the national oil giant. He was briefed the crisis situation has arisen due to the lack of payments by the power sector for the furnace oil which is being supplied to them on credit terms. PSO required at least Rs 51 billion to retire its LCs this month however, despite various promises by the Water and Power Ministry only Rs 13 billion have so far been paid in the last couple of weeks, leaving a whopping deficit of Rs 37 billion for the current month only.

Courtesy: Daily Times

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