The Pakistan State Oil (PSO), federal government and International Monetary Fund (IMF) are actively working on plans to clear Circular Debt. This coordination at the higher level was confirmed by the company’s executive management at their annual general meeting, where it was mentioned that the corporate receivables have not changed significantly since February 2024. The new structural framework aims to return money to the cash-strapped national energy supply chain.
Financial Recoveries and Market Domination
Despite the macroeconomic challenges, PSO managed to regain market share, accounting for more than 40 percent of the market share, particularly in volumes starting in July 2026. The company received essential financial infusions at the end of the fiscal year, and the total recovered was around Rs. 10 billion from the Power Division, along with Rs. 26 billion from Sui Northern Gas Pipelines Limited (SNGPL). Management said that the positive commercial results are due to the availability of the product, and not to aggressive retail discounts, while instead relying on the execution of the supply chains and pricing discipline.
Infrastructure Modernization and EV Transition
PSO is undertaking aggressive infrastructural improvement to protect its dominant market position from over 40 other oil marketing companies (OMCs):
By 2027, upgrade network locations to automatic tank gauging systems to gain access to new, improved margins.
Electric Vehicle Integration: Providing dedicated EV charging stations in major highways such as Karachi-Hyderabad, Lahore and Rawalpindi-Peshawar.
Logistical Overhauls: completing commercial arrangements for White Oil Pipeline extension to Peshawar to minimize the use of unsafe road transport.
The company is also working on contingency plans in case of a petroleum sector liberalisation, and is also coordinating with the Ministry of Petroleum to diversify crude oil suppliers to minimise the risk of geopolitical events in the Strait of Hormuz.
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