ISLAMABAD: The Pakistan State Oil (PSO) is currently facing a default risk in its local and international payment obligations, which may hamper jet fuel supplies to defence forces and local and foreign airlines. To date, the PSO has suffered a net exchange loss of Rs28 billion on such loans due to devaluation of Pakistan rupee vis-à-vis US Dollar, the documents revealed. The Petroleum Division had sought the provision of Rs28 billion to improve the liquidity position of PSO and avert any untoward situation. They said the government had advised PSO and PARCO oil refinery to obtain loan from foreign banks to ensure the import of petroleum products and crude oil. PSO has been allowed to obtain loans from foreign banks in dollars equivalent to Rs800 billion annually to ensure the import of petroleum products, sources added.

Source: Pakistan Today February 05, 2020 17:12 UTC