PSO financial crisis worsens, unpaid bills hit Rs. 800 Billion

Pakistan State Oil (PSO) grapples with a severe financial crisis as its total receivables balloon to Rs. 800 billion, according to ARY News. The financial crisis has significantly impacted the company’s profitability, with the largest share of receivables owed by Sui Northern Gas Pipelines Limited (SNGPL).

Sources indicate that Sui Northern Gas Pipelines Limited (SNGPL) owes Pakistan State Oil (PSO) Rs. 515.28 billion, while Hub Power Company Limited (Hubco) must pay Rs. 14.80 billion. Additionally, the energy sector owes PSO Rs. 189 billion, and Pakistan International Airlines owes Rs. 29.25 billion.

Sources report that Pakistan State Oil (PSO) also owes payments to local refineries for imported petroleum products and has sought Rs. 50 billion from various ministries. Earlier in September, reports indicated that the import bill for re-gasified liquefied natural gas (RLNG) exceeded Rs. 506 billion, while Sui Northern Gas Pipelines Limited (SNGPL) owes PSO Rs. 506 billion for LNG supply.

The power sector’s dues have surpassed Rs. 186 billion, further complicating PSO’s financial challenges, while Pakistan International Airlines (PIA) owes PSO Rs. 28.75 billion. The decline in the rupee’s value has placed an additional burden of Rs. 88.84 billion on the government. Despite the significant outstanding dues, sources revealed that PSO has only received Rs. 10 billion in payments over the past month.

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