ISLAMABAD, August 20, 2025: The Auditor General of Pakistan (AGP) has unearthed financial irregularities worth Rs669 billion in Pakistan State Oil (PSO), raising concerns over the company’s financial health and its growing reliance on loans.
According to the audit report, PSO has Rs467 billion stuck in unpaid dues from various entities, including the Pakistan National Shipping Corporation (PNSC), bulk consumers, and retailers.
The findings further revealed that an additional Rs439 billion is owed by retailers and cardholders, reflecting weak recovery mechanisms and financial management lapses.
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The report also highlighted rising operational and procurement expenses, with costs climbing by Rs56 billion, forcing PSO to increasingly rely on short-term borrowing to sustain its operations.
This is not the first time PSO has faced scrutiny. In 2022, the AGP flagged irregularities of Rs46.75 billion, including receivables from bulk customers such as HUBCO. The escalation to Rs669 billion in 2025 signals worsening recovery mechanisms and weak internal controls.
Experts warn that the mounting arrears and growing loan dependence could erode PSO’s profitability, affect its credit ratings, and put pressure on Pakistan’s fuel supply chain. The matter is expected to be taken up by the Public Accounts Committee (PAC) for corrective measures.
