Pakistan State Oil (PSO) is facing mounting financial challenges as its outstanding dues have soared to a staggering Rs 786 billion, according to industry sources. A significant portion of this debt is tied to the import bill for Re-gasified Liquefied Natural Gas (RLNG), which now exceeds Rs 506 billion. Sui Northern Gas Pipelines Limited (SNGPL) is the largest debtor, responsible for the entire Rs 506 billion owed for LNG supplies.
The power sector also owes PSO more than Rs 186 billion, further worsening the company’s financial situation. To make matters worse, Pakistan International Airlines (PIA) has yet to pay Rs 28.75 billion to PSO for fuel supplies.
Adding to these financial pressures is the recent depreciation of the Pakistani rupee, which has cost the government an additional Rs 88.84 billion. Despite these large outstanding debts, only Rs 10 billion has been repaid to PSO over the past month, sources revealed.
Government Delays Privatization of Major Energy Companies
In a related development, the government has decided to delay the privatization of several key state-owned energy companies, including PSO, Pak Arab Refinery Company (PARCO), and the Sui gas companies. The Petroleum Division has submitted a summary to the Cabinet Committee, suggesting that the final decision on privatization should be made by the federal government.
The summary highlighted several issues that need to be resolved before moving forward with privatization. One of the main concerns is the potential effect on existing LNG agreements if PSO is privatized. The report emphasized the need for careful evaluation of these complexities before making any decisions.
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PSO’s Outstanding Dues Skyrocket to Rs 786 Billion Amid Growing Financial Strain
Pakistan State Oil (PSO) is facing mounting financial challenges as its outstanding dues have soared to a staggering Rs 786 billion, according to industry sources. A significant portion of this debt is tied to the import bill for Re-gasified Liquefied Natural Gas (RLNG), which now exceeds Rs 506 billion. Sui Northern Gas Pipelines Limited (SNGPL) is the largest debtor, responsible for the entire Rs 506 billion owed for LNG supplies.
The power sector also owes PSO more than Rs 186 billion, further worsening the company’s financial situation. To make matters worse, Pakistan International Airlines (PIA) has yet to pay Rs 28.75 billion to PSO for fuel supplies.
Adding to these financial pressures is the recent depreciation of the Pakistani rupee, which has cost the government an additional Rs 88.84 billion. Despite these large outstanding debts, only Rs 10 billion has been repaid to PSO over the past month, sources revealed.
Government Delays Privatization of Major Energy Companies
In a related development, the government has decided to delay the privatization of several key state-owned energy companies, including PSO, Pak Arab Refinery Company (PARCO), and the Sui gas companies. The Petroleum Division has submitted a summary to the Cabinet Committee, suggesting that the final decision on privatization should be made by the federal government.
The summary highlighted several issues that need to be resolved before moving forward with privatization. One of the main concerns is the potential effect on existing LNG agreements if PSO is privatized. The report emphasized the need for careful evaluation of these complexities before making any decisions.
