Pakistan State Oil (PSO), the federal government, and the International Monetary Fund (IMF) are collaborating on a strategy to resolve outstanding circular debt. Management stated that the company's receivables have stayed constant since February 2024.
The firm collected approximately Rs. 10 billion from the Power Division following the conclusion of the financial year. Sui Northern Gas Pipelines Limited (SNGPL) paid PSO Rs. 26 billion during the final quarter.
PSO regained a market share exceeding 40 percent, with most of these gains occurring since July 2026. Company leadership maintains that PSO remains profitable and does not rely on aggressive discounts to sustain its position.
The company intends to set up electric vehicle charging stations at specific outlets and along major routes, including the Karachi-Hyderabad, Lahore, and Rawalpindi-Peshawar highways. Management expects to complete upgrades to the automation of the retail network by March 2027.
QatarEnergy LNG supplies under a government-to-government agreement are profitable on a standalone basis, according to PSO. However, an effective tax rate exceeding 50 percent renders the LNG business loss-making once finance costs are included.
Since March, PSO has received 11 cargoes from QatarEnergy under existing contracts. Local refineries currently satisfy between 95 and 97 percent of the domestic demand for high-speed diesel, PSO reported.
The refining sector requires an estimated $5 billion to $6 billion for necessary upgrades. Negotiations regarding tariffs and commercial terms for the White Oil Pipeline to Peshawar are nearing completion.
The White Oil Pipeline project is a joint venture involving PSO, SOCAR, and the Frontier Works Department (FWO).
