KARACHI: The growing liquidity crunch at Pakistani state-owned energy company, the Pakistan State Oil (PSO), has posed a threat to the country’s gas imports during winter, an expert said on Monday, after an unprecedented buildup of Rs615.652 ($2.7 billion) receivables. 

These receivables are owed by the Sui Northern Gas Company (SNGPL), Pakistan International Airlines (PIA) and the Generation Company (Genco-III) and Hub Power Company (Hubco), according to documents seen by Arab News. The Pakistani energy giant’s payables have also surged to Rs252.947 ($1.14 billion) as of November 13. 

Financial experts say with such huge receivables, PSO is left with less amount to import gas this winter season. 

“The net worst outcome of the liquidity crunch would be that the country will have to import lesser LNG cargoes during the winter,” Samiullah Tariq, research director at the Pakistan-Kuwait Investment Company, said on Monday. 

“However, it is expected that the company would arrange liquidity.” 

Pakistan, one of the fastest-growing markets for LNG, utilizes imported gas for power generation. 

Petroleum Minister Musadik Malik last week warned that people may face gas shortfall in winter, despite the availability of an additional 200 million cubic feet per day (MMCFD) of gas from January till February next year. 

Pakistani petroleum importers have been complaining that banks are not opening their Letters of Credit (LCs) due to a shortage of dollars. 

However, the central bank governor assured on Monday that LC cases of up to $100,000 would be resolved within a week. 

Pakistani commercial banks are suspected of exploiting the country’s low-reserve position through exchange rate manipulation. The central bank has launched an investigation into the matter, which is being expanded. 

“Our inspection team is working on this and by the end of this month it would be completed,” Jameel Ahmed, governor of the State Bank of Pakistan, said at an event at the Institute of Business Administration (IBA) on Monday. 

“We have focused on the banks, keeping in view the volume, which are more active in foreign exchange business.”