PSO’s Receivables Balloon to Rs. 909 Billion as Energy Sector Circular Debt Deepens

Pakistan State Oil (PSO), the country’s largest fuel supplier, is facing mounting liquidity pressures as its total receivables have climbed to Rs. 908.7 billion, highlighting the worsening circular debt crisis across Pakistan’s energy sector.

According to the company’s receivables and payables position as of July 20, 2026, Sui Northern Gas Pipelines Limited (SNGPL) remains PSO’s largest debtor, owing Rs. 535 billion for supplies of re-gasified liquefied natural gas (RLNG). The power sector accounts for another Rs. 168 billion in outstanding payments.

PSO is also awaiting Rs. 81 billion in tax refunds and claims from the Federal Board of Revenue, Rs. 60 billion in foreign exchange loss claims, Rs. 31 billion from Pakistan International Airlines, Rs. 24 billion in price differential claims linked to the Iran-Israel conflict, and Rs. 5.3 billion from Pakistan Railways.

The data reveals that Rs. 525 billion of PSO’s receivables are overdue, while Rs. 310 billion of the total outstanding amount consists of late payment surcharges, reflecting prolonged delays by government entities and state owned enterprises.

Despite being owed more than Rs. 908 billion, PSO itself must pay Rs. 157 billion to suppliers, including Rs. 56 billion to domestic oil refineries and Rs. 101 billion against letters of credit for crude oil, petroleum products, and LNG imports.

Pak-Arab Refinery Company has the largest outstanding claim against PSO at Rs. 30.3 billion, followed by Pakistan Refinery Limited, National Refinery Limited, and Attock Refinery Limited.