The federal government has approved sovereign guarantees worth Rs. 100 billion to support financing arrangements for Pakistan State Oil (PSO), providing a major financial cushion to the country’s largest fuel supplier. The decision is aimed at helping PSO secure funding from commercial banks and maintain uninterrupted fuel imports and supply across the country amid ongoing liquidity challenges.
Officials believe the guarantees will strengthen PSO’s financial position and ensure smooth operations in the energy sector. The move is also expected to ease pressure caused by circular debt and improve the company’s ability to meet its payment obligations. Industry experts view the approval as an important step toward safeguarding Pakistan’s energy security and ensuring a stable supply of petroleum products nationwide.
