PSO faces worst financial crisis due to government incompetence

Pakistan State Oil (PSO), the country's largest oil marketing company, is facing the worst financial crisis in its history due to the government's failure to pay its dues, reported 24NewsHd TV channel.

PSO has become a defaulter of Rs21 billion to Parco Oil Refinery, which has stopped supplying petroleum products to PSO as a result. This has created a severe shortage of jet fuel at Lahore, Faisalabad and Multan airports, which are running out of stock.

PSO is also likely to default on its letters of credit (LCs) for Kuwait and Qatar next week, which could jeopardize its oil imports.

PSO's liabilities have reached a record level of Rs853 billion, which includes Rs571 billion owed by Sui Northern, Rs152 billion by government power plants, Rs30 billion by HUBCO and Rs14.5 billion by KEPCO.

PSO also has to collect Rs194 billion from PIA and the federal government, and pay Rs21 billion to Parco, Rs8 billion to PRL and Rs7 billion to Attock Refinery.

Reporter: Awaisd Kiyani