ISLAMABAD: Pakistan State Oil (PSO) is facing mounting financial pressure as its total receivables have climbed to Rs908.709 billion, highlighting the deepening circular debt crisis and intensifying liquidity challenges across Pakistan’s energy sector.
According to PSO’s daily receivables and payables statement as of July 20, 2026, the largest outstanding amount—Rs535 billion—is owed by Sui Northern Gas Pipelines Limited (SNGPL) against supplies of re-gasified liquefied natural gas (RLNG). This accounts for more than half of the company’s total receivables.
The company’s receivables from the power sector have reached Rs168 billion, reflecting persistent payment delays that continue to strain the financial health of the country’s energy supply chain.
In addition, PSO is awaiting Rs81 billion in tax refunds and claims from the Federal Board of Revenue (FBR), Rs60 billion in foreign exchange loss claims, Rs31 billion from Pakistan International Airlines (PIA), Rs24 billion in price differential claims linked to the Iran-Israel conflict, and Rs5.3 billion from Pakistan Railways.
The data further reveals that Rs525 billion of the company’s receivables are overdue, while Rs310 billion represents accumulated Late Payment Surcharges (LPS), reflecting prolonged payment delays by various public sector entities.
Despite having receivables exceeding Rs908 billion, PSO is also obligated to settle Rs157 billion in outstanding liabilities. These include Rs56 billion payable to domestic oil refineries for petroleum products already supplied and Rs101 billion against letters of credit (LCs) opened for imports of crude oil, petroleum products, and liquefied natural gas (LNG).
Among local refineries, Pak-Arab Refinery Company (PARCO) has the highest outstanding receivable from PSO at Rs30.348 billion, followed by Pakistan Refinery Limited (PRL) with Rs13.887 billion, National Refinery Limited (NRL) with Rs6.376 billion, and Attock Refinery Limited (ARL) with Rs5.572 billion.
Industry observers note that SNGPL remains the single largest contributor to PSO’s outstanding receivables. As SNGPL supplies RLNG to power producers and industrial consumers, delayed recoveries from downstream customers continue to cascade through the energy value chain, exacerbating liquidity constraints and further worsening Pakistan’s circular debt problem.
The growing receivables burden underscores the urgent need for structural reforms and timely settlement of dues to ensure the financial sustainability of the country’s oil, gas, and power sectors.
Story by Khalid Mustafa
