The Pakistan State Oil Company Limited (PSO) has strongly refuted claims made in the Auditor General of Pakistan’s (AGP) Audit Report for FY 2024–25, saying the figures were taken out of context and do not reflect the company’s actual financial position.
According to the company, the reported receivables of Rs467 billion mainly relate to the energy sector’s circular debt and long-standing dues from Pakistan International Airlines (PIA). Both issues, it said, are being actively pursued at the highest levels of government.
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The remainder consists of trade receivables under normal commercial terms, much of which has already been realized after the audit in line with agreed credit cycles.
Retail and card segment clarification
PSO rejected claims of failing to recover Rs25 billion from the retail segment, stating that 99.8% of the amount has already been recovered according to billing cycles. It also dismissed media reports suggesting Rs439 billion in Retail and Card receivables, clarifying that the actual figure as of June 30, 2024, stood at Rs36 billion, arising from normal operations.
PNSC and financing costs
The company noted that its payable balance with Pakistan National Shipping Corporation (PNSC) has been fully settled. On financing costs, PSO explained that the Rs12 billion increase was due to circular debt financing and the State Bank’s monetary tightening, which raised the average KIBOR from 17.82% to 22.17% during the year.
