Pakistan State Oil has said that the company’s management has complete faith in the abilities of the Ministry of Petroleum & Natural Resources and Ministry of Finance to resolve the issue of circular debt in the near future.

Clarifying a story titled PSO sees no early end to circular debt problem” published on November 4th 2011, the company said in a statement that the headline and views in the story are those of the equity analysts present at the briefing and do not reflect the views of the PSO management.

The analysts, who attended a PSO briefing on Thursday, quoted the PSO management as saying that the state run oil marketing company did not see the circular debt disappearing anytime in near future.

The company said that the ministries of petroleum and finance are working on an L and C arrangement that will end the accumulation of further receivables. The mechanism will also provide a continuous revenue stream, resulting in a significant increase in earnings per share for the company.

The statement said that PSO is positive that the upcoming plan being developed by the ministries will bring a swift resolution to the debt concerns in the power sector. While concluding the analysts briefing held on 3rd November, the management had categorically highlighted 4 areas which will help improve PSO’s profitability in the near future.

(Sourced from www.thenews.com.pk)