SNGPL Emerges as PSO’s Largest Debtor
Pakistan State Oil is facing severe financial pressure as its total receivables have reached Rs. 908.7 billion.
The rising amount highlights the deepening circular debt crisis across Pakistan’s energy sector.
According to PSO’s financial position recorded on July 20, 2026, Sui Northern Gas Pipelines Limited remains its biggest debtor.
SNGPL owes PSO Rs. 535 billion for supplies of re-gasified liquefied natural gas.
The power sector has also failed to clear payments worth Rs. 168 billion.
These unpaid bills are placing significant pressure on PSO’s ability to maintain fuel supplies and manage daily operations.
Government Claims and State Entities Add to Outstanding Payments
PSO is waiting for Rs. 81 billion in tax refunds and other claims from the Federal Board of Revenue.
The company has also submitted foreign exchange loss claims worth Rs. 60 billion.
Pakistan International Airlines owes PSO Rs. 31 billion, while Pakistan Railways must pay Rs. 5.3 billion.
Another Rs. 24 billion is pending under price differential claims linked to the Iran-Israel conflict.
Official data shows that Rs. 525 billion of PSO’s total receivables are already overdue.
Late payment surcharges account for Rs. 310 billion of the outstanding amount.
The high surcharge figure reflects prolonged payment delays by government departments and state-owned companies.
PSO Faces Rs. 157 Billion in Supplier Payments
Despite being owed more than Rs. 908 billion, PSO has major financial obligations of its own.
The fuel supplier must pay Rs. 157 billion to domestic and international suppliers.
Around Rs. 56 billion is payable to local oil refineries.
Another Rs. 101 billion is due 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.
Pakistan Refinery Limited, National Refinery Limited, and Attock Refinery Limited are also awaiting substantial payments.
The widening gap between PSO’s receivables and immediate liabilities could affect fuel imports and domestic supply stability.
The situation also underlines the urgent need for energy-sector reforms and faster settlement of government-backed payments.
