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Pakistan State Oil (PSO) remains exposed to over Rs. 30 billion in unpaid receivables from Pakistan International Airlines (PIA), despite the national carrier’s recent sale to an Arif Habib-led consortium for Rs. 135 billion.
The outstanding amount relates to jet fuel supplies provided to PIA and includes both the principal and late payment surcharges. PSO had earlier approached the federal government to recover its dues through the transfer of PIA’s Islamabad real estate, but the asset has yet to be handed over.
According to PSO, discussions with PIA regarding the settlement were concluded in March 2024, when both parties reconciled their accounts. Following a federal cabinet decision on February 5, 2024, PSO issued a consent letter based on assurances that a Rs. 15 billion Islamabad property would be transferred in its favour. Additionally, Rs. 8.8 billion was to be moved to the books of PIA Holding Company.
However, despite repeated follow-ups, including a formal request to the privatization ministry in December 2025, the agreed property transfer has not taken place.
In a letter to the government, PSO highlighted the continued delay in settlement and warned that the outstanding receivables now stand at Rs. 30.15 billion. The company reiterated that the unresolved issue is putting financial pressure on Pakistan’s largest fuel supplier, even after PIA’s privatization.
