Oct 10, 2013 PSO management says selloff unlikely Pakistan State Oil (PSO) is likely not to be privatized in the current fiscal year, according to PSO’s senior management. At an annual general meeting of the leading oil market presiding entity in Pakistan, the PSO board of management said circular debt is a major impediment in the way of PSO’s privatization as any new buyer would push the government to fully resolve the circular debt issue prior to privatization. Further, the board noted, given that PSO continues to post profits, according to a detailed study of state-owned entities by the Privatization Commission, the corporation may not be a priority when it comes to privatization. The major areas of focus for shareholders include privatization rumors circulated in the equity market, the circular debt issue, the company’s payout policy and Hubco’s coal conversion plan. Last year, the government settled PSO’s circular debt worth Rs170 billion in two tranches (September 2012 and June 2013). However, the company’s officials believe that the circular debt issue is likely to arise again in FY14. PSO, unlike in the past, announced bonus shares with its interim results. (The News)
Posted on: Thu, 10 Oct 2013 06:11:48 +0000
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