Pakistan State Oil on the verge of default

KARACHI: Pakistan State Oil (PSO) will likely default on payments to its international fuel suppliers if it fails to arrange Rs15 billion today, Geo News reported.

According to reports, last week, the PSO had urged the federal government to release Rs15 billion so that it could save itself from defaulting on its LC payments and square with its creditors.

PSO’s troubles have multiplied since two banks refused to issue letter of credit to the state-run oil company.

Experts say PSO’s failure to pay up will have serious repercussion for the economy of the country and may aggravate the prevailing energy crisis.