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Thursday Jul 31, 2014, Shawwal 3, 1435 Hijri
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Financial crunch in PSO, power crisis feared

14 February, 2013

Pakistan State Oil is reeling from a serious financial crisis and it is feared that it would result in the suspension of furnace oil across the country, according to PSO sources.

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Pakistan State Oil is reeling from a serious financial crisis and it is feared that it would result in the suspension of furnace oil across the country, according to PSO sources.

The sources attributed the non-payment of dues which have pushed over Rs 158 billion by various companies and institutions.

The companies which have defaulted on payments to the PSO include KAPCO, HUBCO, PIA, Railways and the KESC and oil supply has been suspended to them.

According to the PSO in case of a single default the oild imports would remain suspended for 45 days and it is feared it would result in suspension of furnace oil supply which in turn may result in power crisis.

Furnace oil supply to the power sector is being slashed by 6,000 metric tons a day which may result in severe power crisis. PSO has asked the government for Rs 50 billion to get of its financial crisis.

Meanwhile, understanding the seriousness of the situation the government has released Rs 5 billion to the PSO immediately, however, PSO sources termed Rs 5 billion insufficient.

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