ISLAMABAD: Pakistan State Oil (PSO) continues to face a major financial strain as receivables of around Rs30 billion remain stuck with Pakistan International Airlines (PIA), following the airline’s failure to transfer a pledged real estate asset to settle outstanding dues.
PSO had sought the transfer of PIA’s Islamabad real estate as settlement against unpaid jet fuel supplies. However, despite the completion of PIA’s privatisation process, the agreed asset has yet to be handed over.
A PSO spokesperson told The Express Tribune that no property has been transferred so far, adding that the company will continue to claim the full receivable amount until the legal transfer of any agreed asset is completed. The total outstanding amount currently stands at Rs30.15bn, including principal and late payment surcharges.
PSO management has formally raised the issue with Privatisation Commission Chairman and Adviser on Privatisation Muhammad Ali, urging swift settlement of the dues. The company recalled that accounts with PIA were reconciled on March 21, 2024, determining outstanding payables of Rs23.8bn as of September 30, 2023.
Following a federal cabinet decision on February 5, 2024, PSO had issued its consent letter on March 22, agreeing to accept the transfer of PIA’s Islamabad land, estimated at Rs15bn, subject to government approval. It was also agreed that Rs8.8bn in receivables would be shifted to the books of PIA Holding Company.
With the privatisation of PIA completed on December 23, 2025, PSO has renewed its request for the transfer of the Islamabad property. Despite repeated engagements, the asset has not been transferred, leaving PSO exposed.
Industry officials warn that if the matter is not resolved promptly, PSO could become the first major casualty of the PIA privatisation process, further straining the state-owned oil company’s financial position.
Story by Zafar Bhutta
