PSO to fund $1.5-2 billion investment with debt

Pakistan State Oil (PSO) has announced plans to raise foreign debt to finance a significant portion of its planned $1.5-2 billion investment in Pakistan Refinery Limited (PRL). Meanwhile, its receivables have surged to Rs810 billion, largely due to circular debt, including late payment surcharges. At an analyst briefing on the financial accounts for the first nine months of FY24, officials from the state-owned oil marketing company revealed that PSO is diversifying its business. The company is setting up electric charging stations and venturing into the financial and renewable energy sectors to boost economic activities and increase earnings. PSO also plans to expand its oil storage capacity from the current 20-day reservoirs and enhance its oil pipeline network in northern Pakistan to reduce road transportation of oil. However, demand for premium petroleum products dropped significantly in the outgoing fiscal year due to price increases and an overall industrial slowdown.