Sui Northern Gas Pipeline Limited is the biggest defaulter, owing Rs. 465 billion in unpaid invoices for liquefied natural gas imports, of the Rs. 740 billion total receivables held by Pakistan State Oil (PSO).
This astounding figure demonstrates the severe financial hardship that Pakistan’s allegedly largest energy importer is experiencing.
Additionally, Pakistan State Oil is required to recover Rs. 179 billion from the power sector as oil supply costs for the generation of electricity. The main defaulters, who must pay Rs. 147.6 billion, are generation companies, as was to be expected. Hub Power Company Limited (Hubco) and Kot Addu Power Company Limited (KAPCO) both owe money—Rs. 25.3 billion and Rs. 5 billion, respectively.
Relevantly, because there is no legal framework in place, domestic consumers have not paid their LNG bills.
Pakistan International Airlines (PIA), which depends on PSO for its jet fuel, is another well-known defaulter. The PIA has a debt of Rs. 25.7 billion.
A further Rs. 8.93 billion is anticipated from the government to cover PSO’s price differential claims.
The other side of the coin reveals that PSO owes oil refineries Rs. 88 billion. The state-owned company owes the Pakistan Refinery Limited, Pak-Arab Refinery Company, National Refinery Limited, Attock Refinery Limited, and Enar a combined total of Rs. 52.9 billion, Rs. 12 billion, Rs. 3.2 billion, and Rs. 2.6 million.
In addition, PSO needs to secure Rs. 228 billion for Kuwait Petroleum Corporation’s LNG payments, standby letters of credit (SBLC), and other letter of credit settlements.
