PSO unable to import oil

[Lahore_Real_Estate]

ISLAMABAD - Due to sever ever-soaring circular debt crisis, Pakistan State Oil (PSO) seems unable to conclude its new oil import deals planned for March-April 2011, as the receivables by the cash-strapped public sector company has reached to Rs 166.43 billion plus.
Well-placed sources in Ministry of Petroleum and Natural Resources informed TheNation on Sunday that the public sector company is suffering circular debt of Rs 166 billion, thus there are remote chances of PSO securing oil import supplies in the given situation. The Pakistan State Oil (PSO) has awarded tender for one million tons oil import, planned for March-April 2011, to meet domestic requirements, despite facing financial woes due to non-payment of dues by power sector.
“Yes, on promise of payment of Rs 30 billion at the earliest by the Ministry of Finance and the Ministry of Water and Power, tender has been awarded for oil import, spokesman of the PSO said, adding that “PSO is under financial constraints but after Rs 30 billion being received situation would ease out for a few weeks and we would further prevent accumulation of circular debt”. She, however, said it has come to my notice that the Finance Ministry has released Rs 30 billion to Water and Power Ministry for PSO. It may be recalled that reportedly PSO had deferred award of tender on February 21, 2011 due to lack of funds. “The power sector could face fuel supply suspension and the nation might have faced major power outages if PSO had not awarded tender for oil imports,” sources added. In a meeting recently chaired by Minister Finance Dr Abdul Hafeez Sheikh, it was announced to release Rs 30 billion to the Ministry of Water and Power to release the amount onward to PSO. “So far, no money has been released out of the committed amount,” sources said, adding that the tender was awarded hoping that Rs 30 billion amount would be released to PSO to make payment to the fuel suppliers.