- July 27, 2026
- Posted by: Tresmark
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Pakistan State Oil (PSO) is facing mounting liquidity pressure as rising receivables from the power and gas sectors continue to strain its cash flows, raising concerns over the stability of the country's fuel supply chain.
According to industry data, Sui Northern Gas Pipelines Limited (SNGPL) remains PSO's largest debtor, with outstanding dues reaching Rs536 billion as of 23 July 2026, including Rs274 billion in principal and Rs253 billion in late payment surcharge (LPS).
Industry sources said recoveries from SNGPL continue to lag behind payments for imported LNG cargoes, creating a persistent cash flow gap for PSO.
Meanwhile, receivables from the power sector have climbed to Rs168 billion, with a substantial portion remaining unpaid since FY2018-19, adding further pressure on the company's finances.
The accumulation of unpaid dues has created a bottleneck across the energy supply chain, affecting payments to domestic refineries and international fuel suppliers alike.
As a result, PSO has increasingly relied on short-term bank borrowing, driving up debt servicing costs and reducing available credit lines. The liquidity constraints have also limited the company's ability to settle obligations with local refiners and overseas suppliers on time.
Energy sector analysts warn that unless the government implements a structured settlement plan, the worsening liquidity crisis could disrupt fuel procurement and pose risks to Pakistan's energy security.
