The Pakistani State Oil has faced a huge financial crisis due to the sale of the Pakistani International Airlines. According to the official reports, the national oil company has over 30 billion rupees of unpaid debts.
This huge figure comprises 15 billion rupees of principal debt and 15 billion rupees of late payment fees. This week, the situation was critical as the government is ready to complete the process of privatization of the airline.
Impact of the Airline Sale
The federal government plans to move most of the airline’s debts to a separate holding company. However, the current plan does not show how the oil company will get its money back. This delay threatens the financial health of the largest fuel supplier in the country. Management at the oil firm is very concerned about the lack of a clear payment schedule. They believe that losing this money will make it harder to import fuel for the nation.
Recovery Efforts and Future Steps
The Ministry of Finance and the Privatization Commission are now looking for a solution. Officials must decide if they will pay the debt directly or use government bonds to cover the loss. Investors are watching the situation closely because it affects the success of the airline sale. The government needs to settle these unpaid bills quickly to keep the national oil supplier running during this transition.
