At PSO, circular debt stops growing

In a hopeful turn in a long-standing energy sector dilemma, Pakistan State Oil (PSO) has announced that circular debt – the entrenched, structural burden on Pakistan’s public energy companies – has not grown since February 2024 on its receivables from SNGPL. While overall receivables remain eye-wateringly high, this stabilisation represents a key milestone for the state-owned oil marketing giant, which also posted a solid 14% rise in profit for the first nine months of fiscal year 2025.

With total receivables standing at Rs732 billion as of March 2025, and late payment surcharge (LPS) claims exceeding Rs200 billion, the absence of new accruals on the SNGPL side is a rare glimmer of fiscal discipline in a historically mismanaged space.

PSO reported a net profit of Rs15.27 billion in the nine months of fiscal year 2025, up from Rs13.40 billion in the same period last year – a 14% year-on-year increase. Earnings per share also improved to Rs32.52, up from Rs28.54. This rise came despite a 13% decline in sales revenue, from Rs2.67 trillion in the first nine months of fiscal year 2024 to Rs2.34 trillion this year.