Nawaz Sharif’s statement and Pakistan State Oil’s rejoinder

It was interesting to hear Mian Nawaz Sharif speak to the press after the Central Committee of PML-N’s meeting on 25th May, 2010. Most of things he said were generic in nature. It had to be generic as there is nothing concrete he has to say. He named a few institutions that are suffering under “corrupt” practices. He named Pakistan State Oil too. Needless to say that because of his nadaan advisors and people who draft such communiqué which seemed to the media like a war chant from the formidable Mian Nawaz Sharif, the markets perceived it the wrong way, with the KSE 100 index tumbling 259 points or 2.67%. PSO’s share price fell by 5%. Who gained because of all that was said, may I ask Mian sahab? One has to be careful about what one says.

Pakistan State Oil has come out with a statement, which it would dare not against a former Prime Minister, who can tomorrow again become the chief executive of the country. Be careful sir, with what you say! There has to be a difference between you and the Jang Group.

PSO says Nawaz Sharif’s statement ‘factually incorrect’

Thursday, May 27, 2010

By our correspondent

KARACHI: The Pakistan State Oil (PSO) on Wednesday contradicted former premier Nawaz Sharif’s comments regarding its performance, saying that he had made a factually incorrect statement.

PSO categorically denies the comments made by Nawaz Sharif, “who in his zeal to project his point-of-view has resorted to factually incorrect statements,” the state-run company said.

“The PML-N (Pakistan Muslim League-Nawaz) leader appears to be misinformed about current company performance, said PSO.

“The leading energy provider has announced very strong results heralding a prosperous last quarter and sound financials backed by its many initiatives.”

“During the period under review, PSO’s sales revenue touched Rs627 billion as compared with Rs540 billion during corresponding period last year. Earnings after tax for the third quarter were Rs2.5 billion, accumulating to Rs7.5 billion for the nine-month period,” it added.

Pakistan State Oil said that its board of directors and ministry of petroleum recognise the Pakistan State Oil management’s efforts in transforming the largest public sector organisation into a viable and profitable entity despite problem of circular debt.

As of May 26, 2010, PSO’s receivables stand at an alarming Rs120 billion and it had to resort to heavy borrowings, resulting in its incurring high financial charges.

The company said the management remains committed to values of transparency and good corporate governance as is evident from the agreement with Transparency International Pakistan (TIP) to help Pakistan State Oil ensure compliance with standard operating procedures.



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