2011-04-30

PSO accounts restored

The PSO officials asked the FBR to give some breathing space to the company since its receivables of Rs 170 billion had tied its hands. – File Photo by AFP

KARACHI: The Federal Board of Revenue (FBR) restored the frozen bank accounts of the Pakistan State Oil (PSO) on Saturday.

The FBR had frozen the bank accounts after the PSO failed to meet its tax obligations, but reversed the decision in the wake of negotiations during  which the company took the tax men into confidence over the financial straits it was in.

The PSO officials asked the FBR to give some breathing space to the company since its receivables of Rs 170 billion  had tied its hands.

The tax authorities were apprised that their decision to freeze the accounts of PSO would dissuade the international suppliers from doing business with Pakistani companies.

"While the receivables continue to tower, PSO has a responsibility to make payments to international suppliers in order to ensure an uninterrupted fuel supply to the nation. Currently the local refineries are not giving any product to PS0.

"Therefore the company's reliance on imports has increased. The company has urged the power sector to make immediate payments so that the company is in a better position to fulfill its international commitments and meet its tax obligations," a press release said.

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