Pakistan State Oil’s (PSO) total major receivables have reached Rs908.7 billion, highlighting the continued impact of circular debt and long-standing payment delays across Pakistan’s energy sector.
Of the total amount, Rs525.8 billion is overdue, while late payment surcharge (LPS) accounts for nearly Rs380 billion.
SNGPL Remains The Dominant Debtor
Sui Northern Gas Company Limited (SNGPL) remains PSO’s largest debtor, owing Rs535.5 billion for RLNG supplies made between 2017 and 2025.
The principal amount stands at Rs274 billion, while LPS and accrued surcharge together exceed Rs261 billion.
This single exposure represents more than half of PSO’s total major receivables.
The large surcharge compared with the original principal highlights how prolonged payment delays continue to increase outstanding liabilities.
Power Sector And Government Claims Add Further Pressure
Receivables from the power sector total Rs168.3 billion, with most linked to furnace oil supplied to GENCOs and KAPCO between 2017 and 2022.
Late payment charges make up a significant portion of these outstanding dues.
Claims involving PIA and the federal government stand at Rs118.1 billion. These include a Rs60.8 billion exchange-rate differential on an FE-25 loan dating back to 2013.
A separate Rs24.2 billion claim related to the 2025 conflict, along with older Petroleum Division dues from 1996-2014, also remain unresolved.
PIA’s jet-fuel dues from 2023, including surcharge, add another Rs31.2 billion.
Pakistan Railways owes Rs5.3 billion for high-speed diesel and lubricants supplied in 2025. Of this amount, Rs2 billion is overdue, while the remainder is not yet due.
An Rs81.5 billion sales-tax receivable from the Federal Board of Revenue, pending since 2022, also remains on PSO’s books.
PSO Payables Remain Far Lower
In contrast, PSO’s major payables total only Rs157.7 billion.
Refinery dues account for Rs56.2 billion, while letters of credit, Kuwait Petroleum Corporation and standby letter of credit payments related to LNG make up the remaining Rs101.5 billion.
The significant gap between receivables and payables has created a persistent liquidity mismatch for the oil marketing company.
Working capital remains tied up in government and utility dues even as PSO continues to meet import and supplier obligations.
Circular Debt Continues To Pressure Energy Sector
The latest position as of the July 20, 2026 closing shows little improvement in the circular debt chain that has long affected Pakistan’s energy sector.
Unresolved historic claims and growing late payment surcharges are making recovery increasingly complicated for PSO.
The scale of outstanding receivables also highlights the broader financial pressure created when payments move slowly through the energy supply chain.