Pakistan State Oil (PSO) considers acquiring stakes in public energy firms and power plants for debt offset.
Pakistan State Oil (PSO), the nation's largest oil marketer, is in talks with the government over a plan to acquire stakes in public sector energy companies to offset its debt owed by firms such as the national airline. The International Monetary Fund (IMF) has expressed concern over the unresolved debt in Pakistan's power sector, with a total circular debt in the power and gas sectors standing at Rs4.6 trillion ($17 billion) as of June 2023. PSO is considering acquiring stakes in assets such as power plants in Nandipur and Guddu, as well as equity stakes in profitable public sector companies like the Oil and Gas Development Co. PSO is also involved in the settlement framework for the privatization of Pakistan International Airlines, which may include a stake in the airline's non-core assets.