Pak Observer reported that after financial debacle of Steel Mills, Pakistan Railways, & PIA now death knells are ringing for Pakistan State Oil. The premier oil supply agency is facing acute financial crunch and needs immediate resuscitation. The news appearing in press reveals how badly the company already suffering from sparseness of resources has further been denuded of its finances.

Murky government organizations have put the country on back foot on economic front with no hope of improvement. Major issues of Macro economics have been kept in cold storage and just interim arrangements are being made to run the state organs.

Before PSO burns out all its resources, government has to take some concrete steps to remove imbalance present in its functionaries and overcome its casual attitude of dealing with core issues.

Outstanding dues of PSO towards government have reached the alarming figure of PKR 185 billion. Simultaneously, the company’s payables have gone to PKR 199 billion causing sheer imbalance in the finances of the company gradually nearing its complete collapse.

The overall receivables are PKR 384 billion that shows how low is turnover of company sales and how poorly its resources are managed. Too low turnover of receivables has resulted in piling up of receivables viz a viz payables. Poor liquidity ratio is another serious cause of concern.

(Sourced from www.pakobserver.net)