PSO, Government and IMF Work on Circular Debt

Pakistan State Oil, the government and the IMF are working on a plan to settle outstanding circular debt. Circular debt is the pile of unpaid energy bills that moves from one company to another when the last payer in the chain does not clear the amount in full.

Pakistan State Oil, often called PSO, sells fuel. When other parts of the energy system do not pay on time, PSO is left with receivables. Receivables are money that is owed to the company but has not yet come in. PSO says those receivables have remained unchanged, which means the unpaid amount has not moved while this plan is being discussed.

The three parties named are PSO, the Pakistani government, and the IMF. The IMF is the International Monetary Fund, which often talks to the government about how public money and energy bills are handled. The update says they are working on a plan. It does not say a deal has been signed or that the debt has already been paid.

What the circular debt plan is trying to settle

Outstanding circular debt is the stock of old unpaid bills still sitting in the system. A settlement plan would be a way to clear that stock so companies are not stuck waiting for money. The update does not give a rupee figure for the debt, a deadline, or the method, such as a surcharge, a loan, or a write-off.

PSO's own point is narrow and important: its receivables have remained unchanged. In plain terms, the money owed to PSO has not come down during this period. That is why a settlement plan is being worked on, rather than described as already complete.

Until the three sides publish a finished method, the public fact is only that talks on circular debt are under way and that PSO's unpaid bills have not shifted.

Our verdict

PSO, the government and the IMF are preparing a plan to settle outstanding circular debt. PSO says the money owed to it has stayed the same. No total, deadline, or signed deal is included.

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