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Apropos news story titled "International firms refuse LNG supplies to PSO " by Khaleeq Kiani which appeared in the July 5th, 2015 edition of DAWN ; Pakistan State Oil (PSO) categorically refutes the statements made in this article. The article has incorrectly linked together circular debt related matters to create a misleading article which is not representative of actual facts, hurts supplier sentiment and hampers the country�s future economic plans. �

It is on record that no international firm has refused to supply LNG to Pakistan. B oth Gunvor and Trafigura�withdrew from the bidding process of their own accord due to inability to provide required LNG volumes during the given time period rather than any concerns over the company�s receivables. Qatar has also not declined to continue doing business on temporary basis rather there are some port constraints which are being discussed on a government to government basis for resolution. � The assertion that special permission was secured from the prime minister for berthing of vessels is also incorrect as the LNG was imported via a normal tender process carried out as per the PPRA rules which govern purchase activities of government entities. Furthermore, the statement that PSO is on a look after basis on verbal orders of the petroleum ministry is also untrue as an official notification was issued by the Ministry for Petroleum and Natural Resources for appointing Mr. Yacoob Suttar as MD PSO on a temporary basis.

While circular debt does exist, the onus for the settlement of the same rests with power sector which needs to make payments for the fuel supplied to them and clear the previous outstanding as well. The accumulation of receivables is however no way reflective of the performance of PSO or its management.

The Company calls upon the journalist and the newspaper to be more thorough and responsible before publishing unsubstantiated statements which negatively impact the business prospects of the company and the country.

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