Circular debt

According to a Business Recorder exclusive, receivables of Pakistan State Oil (PSO), already high due to overdue payments from the power sector have risen by 23 billion rupees – an amount payable by Sui Northern Gas Pipelines Ltd (SNGPL). The reason: failure to clear payments on re-gasified liquid natural gas (RLNG) with total purchases by SNGPL valued at 424.85 billion rupees with 401.75 billion rupees paid up by April this year. Around 10 billion rupees of the overdue amount, 43 percent, is owed by two independent power producers (IPPs) – Rousch Power and Fauji Kabirwala Power Company – reflecting the amount of their receivables from their consumers. The rest of the receivables are due from government power producers, fertilizer manufacturers, compressed natural gas stations, industries and other consumers.


Published in Business Recorder, 13th April, 2018