I wonder why no one has yet posted this critical news that could led to another hike in Petroleum prices.
PSO on the verge of bankruptcy as well.
According to Pakistan’s official Oil Companies Advisory Committee (OCAC),'If reserves remain for two to three days, it can be called a critical level'.
Country left with lesser oil reserves: PAC told
Muhammad Arshad
Islamabad—The Public Accounts Committee (PAC) on Wednesday was informed that country was left with the lowest oil reserves as well as the Pakistan State Oil (PSO) could default if it would not provided with Rs 60 billions immediately. The Accounts Committee was further briefed that the vicious circle of circular debt was hampering the performance of PSO and other vital national organizations. PAC expressed serious concerns over the deregulation of prices of the petroleum products in the country which failed in providing relief to the masses.
The PAC Sub-Committee met here under the convenership of Zahid Hamid while the meeting was also attended by members including Rukhsana Bangash, Saeed Zafar, Nadeem Afzal Gondal, Aftab Shaaban Mriani which reviewed the audit objections on audit report of the Ministry of Petroleum and Natural Resources and its subsidiary organizations.
MD PSO Irfan Qureshi told NA body that country was left with oil reserves for 72 hours, diesel for 11 days and motor gasoline oil for 4 days while furnace oil reserves were in sufficient quantity. He said that performance of PSO to cater the national requirements had been marooned due to vicious circle of circular debt. “PSO is burdened with loans of Rs 40 billions, but its receivables are Rs 129 billions” he said adding, “Remarkably Rs 116 billions are payable to PSO by power generating companies”.
He commented that six months’ oil supply line in the country would be suspended and PSO would default in case it would not be provided with Rs 60 billions immediately. He observed that measures for deregulating the prices of the petroleum products would not prove effective without a mechanism to link them with international market.
MD Pak Arab Refinery LTD (PARCO). Rasheed Jung told the committee that receivables of PARCO were Rs 36 billions and out of this Rs 34 billions were from PSO. He further observed that the vicious circle of circular debt was the only hurdle in the good performance of the national organizations. Secretary Ministry of Petroleum and Natural Resources Kamran Lashari apprised the committee that temporary measures to tackle with the issue of circular debt would not prove effective because only long term and durable steps could be result oriented.
Country left with lesser oil reserves: PAC told
Country left with three-days petrol, 11 days diesel
ISLAMABAD, July 14 (APP): The country has been left with petrol reserves for just three days while diesel reserves can last 11 days with Pakistan State Oil (PSO) facing default unless Rs.60 billion is paid immediately.
This was disclosed by Managing Director PSO, Irfan Qureshi while briefing the sub-committee of Public Accounts Committee which met here Wednesday under the chairmanship of MNA Zahid Hamid at the Parliament House.
The audit paras of ministries of Ports and Shipping, Petroleum and Natural Resources, Senate and National Assembly Secretariats were reviewed in the meeting.
The MD PSO informed the committee that the PSO outstanding dues against power distribution companies are Rs.116 billion. “ The PSO received over Rs. 10 billion on intervention of the Prime Minister in June,” he observed.
He said if Rs.60 billion was not paid to PSO, it would default. He said that PSO has paid Rs.81 billion to oil refineries.
MD PARCO Rashid Jang informed the committee that the petroleum products should be deregulated but its pricing mechanism should be in line with real prices on international market.
He said PSO owes Rs. 34 billion to PARCO while PARCO debt stood at Rs.36 billion to various stakeholders.
He said the government should reduce taxes in order to provide relief to common consumers.
Secretary of Petroleum and Natural Resources Kamran Lashari apprised the committee that the circular debt issue would not be addressed with temporary measures rather pragmatic steps must be taken to deal with it.
The PAC panel expressed concern over slackness and non-recovery of outstanding dues against the defaulters by Oil and Gas Development Company Limited (OGDCL).
The OGDCL was directed to inform the committee within two weeks about the appointment of non-deserving officials on deputation, their salaries and other perks and privilege.
Managing Director Sui Northern Gas Company Rashid Loon informed the committee that the company was taking pragmatic steps for the recovery of outstanding dues from consumers and industries. The connection of defaulters were being discontinued, he added.
The committee directed PEPCO and Sui Northern Gas Company to devise effective strategy to control gas and electricity pilferage.
The meeting was attended by MNAs Rukhsana Bangush, Saeed Ahmad Zafar, Nadeem Afzal, Aftab Shaban Mirani, officials of Audit department and other concerned ministries.
Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Country left with three-days petrol, 11 days diesel
Q:
Why is this happening?
A: Circular Debt.
