Pakistan’s Auditor General has flagged Rs 669 billion worth of financial and governance issues at Pakistan State Oil (PSO) for the 2023-24 financial year, of which Rs 472 billion has been identified as recoverable, Profit reported.
The Biggest Problem, Unpaid Bills
Most of the flagged amount, nearly Rs 468 billion, comes from customers who owe PSO money and haven’t paid. This includes retailers, bulk fuel buyers, and cardholders. The audit says PSO’s own weak follow-up led to these dues piling up, which forced the company to borrow more money and pay over Rs 12 billion in additional interest.
PSO says it has since recovered about 81 percent of this amount.
A Missing Agreement Cost PSO Billions
PSO was supposed to sign an agreement with the gas companies SNGPL and SSGC that would allow it to charge a penalty when its LNG bills were paid late. That agreement was never signed, even after nearly eight years of talks.
Separately, PSO incurred Rs39.774 billion in financing costs due to delayed recoveries.
Fuel Card Fraud
The audit found approximately Rs 244 million in suspicious transactions on PSO’s fuel cards, indicating weak security. PSO says it has reported the issue to the FIA, recovered part of the money, and has since improved fuel card security.
Safety Concerns With Oil Tankers
Out of PSO’s 10,121 active oil tankers, 4,416 met safety standards set by the oil regulator OGRA. Of the 28 tanker accidents recorded during the year, 18 involved trucks that didn’t meet those standards.
What Happens Next
The Auditor General has asked PSO to recover its outstanding dues more quickly, tighten internal controls, and address the safety and compliance gaps flagged in the report.
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