Being in debt is becoming common it seems. Pakistan Railway and Pakistan International Airlines are a part of the list of companies under debt.
Pakistan State Oil or PSO has millions to be paid in dues as it is to receive outstanding payments from different companies which also includes the PIA.
PSO is facing problems paying internal and external companies due to abysmal recovery from debtors and is facing an acute financial trouble.
PIA’s Debt Towards PSO
According to the state oil company, PIA has used Rs. 830 million worth of fuel and has only paid Rs. 430 million. This is only for the fuel used since November 26 2016.
The total receivables from PIA amount to Rs. 4.42 billion.
PSO issued a statement saying,
PIA is called upon to pay the outstanding amount, failing which PSO would be constrained to immediately suspend oil supplies
Oil Supply Will Be Suspended in Case of Non-Payment
The state oil company has informed the Ministry of Petroleum and Finance Ministry of this problem as well. PSO has sent a letter to the upper management of the PIA requesting the payment of the arrears and warning them of suspension of oil supply if they cannot pay on time.
PSO’s financial problems may also be rooted in the launch of the new RON 92 fuel in the country. The fuel is being sold at a lower price than usual. This is because the people will not buy the fuel if it is priced at its original, higher price.
