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Audit Finds Rs669bn Irregularities in PSO, Rs467bn Still Unrecovered
AGP audit reveals financial irregularities of over Rs669bn in PSO, including Rs467bn in unpaid dues from govt departments and customers—forcing the company to rely on costly loans.
ND
by News Desk
2025-08-20
Audit Finds Rs669bn Irregularities in PSO, Rs467bn Still Unrecovered

The Auditor General of Pakistan (AGP) has uncovered financial irregularities exceeding Rs669 billion in Pakistan State Oil (PSO) for the fiscal year 2024–25, according to a newly released audit report.

The report highlights that PSO has failed to recover a staggering Rs467 billion in dues from various entities, severely impacting the organization’s cash flow and financial stability. The non-paying entities include bulk customers, cardholders, retailers, Southern Electric Power, and the Pakistan National Shipping Corporation.

Cardholders and retailers together owe Rs439 billion, while Rs25 billion could not be recovered from retailers within 25 days of billing — a delay that directly contravenes PSO’s credit policy.

The report states that due to these large-scale recovery failures, PSO was forced to rely heavily on bank loans, resulting in a significant increase in financial expenses.

During the 2022–23 financial year, PSO’s financial expenditure increased by Rs12.55 billion, pushing its total financial outlay to approximately Rs56 billion.

The AGP has recommended immediate corrective measures, including improved internal controls, strict enforcement of credit limits, and the initiation of recovery proceedings against defaulters to prevent further deterioration of PSO’s financial position.

Energy sector analysts have warned that unless PSO aggressively pursues recoveries and reduces its dependence on borrowing, the national oil supplier could face even greater fiscal challenges in the coming months.

 
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