PSO’s Bankruptcy Could Sink the Economy, MD Says
KARACHI: Pakistan State Oil (PSO) – the only public sector oil marketing company – fits into the category of corporate entities that seem too big to fail. However, in the eventuality that that happens, its bankruptcy will not only shake the entire economy, but also take down many private banks with it, PSO Managing Director and Chief Executive Naeem Yahya Mir has warned.
“PSO is so interwoven into the economy of Pakistan that the effects of its bankruptcy will be felt in every part of the country, in both public and private sectors,” Mir told The Express Tribune in an interview.
His fears are not baseless: PSO is a cash-starved, trillion-rupee giant. It has been facing continuous cash flow problems over the last few years, owing mainly to the burgeoning circular debt in the energy sector.
“The biggest problem of Pakistan’s energy sector is the circular debt, because of which our energy crisis has deteriorated. It has to be controlled,” Mir said.
