The ongoing economic breakdown not spared even the state-owned petroleum corporation – humiliated PSO’s (Pakistan State Oil) debt charts. As per the media reports PSO is at the brink of international default. The corporation has to pay a hefty amount of Rs. 775 billion to Qatar of which Rs 498 billion was contributed by Sui Northern Gas Pipelines Ltd (SNGPL).
Every month, PSO imported 8-9 cargoes of LPG (liquified petroleum gas). The corporation needs to pay for the fuel within 1t5 days and it is trying hard to do so but a whopping debt is averting all the struggles.
PSO debt has reached a record-breaking amount of Rs. 411 billion. Moreover, Financial costs have jacked up to Rs. 43 billion for the current fiscal year and Rs. 73 billion for 2023-24 which in turn will shrink its profits.
To reduce the corporation’s financial fuss, the Economic Coordination Committee (ECC) has borrowed Rs 50 billion with sovereign guarantees. However, the Ministry of Finance took 6 weeks to provide a written document that provides assurance that the obligation will be met.
It is related to mention that a sovereign guarantee is a promise made by the government to repay a loan taken out by a public entity, such as a state-owned company, if that entity is unable to repay the loan on its own.
Petrol Prices Increased up to Rs. 13/Liter
The federal government has increased fuel prices in Pakistan up to Rs. 13/liter. Sharing the reason for this fresh hike, the finance division said in a notification that in the last fortnight, Platts Singapore prices registered an increase. “This, along with the depreciation of the Pak rupee, has resulted in an increase of POL products in Pakistan,” the division said.
Accordingly, the price of MS (Petrol) has increased by Rs. 5/liter, and price of High-Speed Diesel (HSD) has increased by Rs. 13/liter. The increase in the price of Kerosene Oil has been kept at Rs. 2.56/liter, reducing government dues on it. Similarly, the price of Light Speed Diesel Oil has been kept constant by adjusting government dues as well.
The new prices will be effective from March 16, 2023.
