ISLAMABAD: Pakistan State Oil (PSO) is facing an intensifying liquidity crisis as mounting receivables from the gas and power sectors continue to strain its cash flow, raising concerns over the stability of the country’s fuel supply chain.
According to independent industry data, Sui Northern Gas Pipelines Limited (SNGPL) remains the largest defaulter, with outstanding liabilities reaching Rs536 billion as of July 23, 2026. The amount includes Rs274 billion in principal dues and Rs253 billion in late payment surcharge (LPS).
Industry sources said recoveries from SNGPL continue to fall short of the pace of imported LNG cargo payments, leaving PSO with a persistent funding gap and increasing pressure on its working capital.
Meanwhile, receivables from the power sector have climbed to Rs168 billion, with a substantial portion of the outstanding amount remaining unpaid since FY2018-19, further worsening the company’s financial position.
The accumulation of unpaid dues has created a significant bottleneck across Pakistan’s energy supply chain, affecting everyone from domestic oil refineries to international fuel suppliers.
To sustain operations, PSO has increasingly relied on short-term bank financing, resulting in higher debt servicing costs and rapidly shrinking available credit facilities. The financial strain is also limiting the company’s ability to make timely payments to local refiners and overseas fuel suppliers.
Energy experts have warned that unless the government implements a comprehensive and timely settlement mechanism for the outstanding receivables, the liquidity crunch could disrupt fuel procurement, undermine supply chain stability, and pose a serious threat to Pakistan’s energy security.
Story by Mushtaq Ghumman
