Circular debt continues to plague PSO.

ISLAMABAD -- Pakistan International Airlines (PIA) has failed to make a payment of around Rs26 billion to state-run oil marketing giant Pakistan State Oil (PSO) for oil supplies, resulting in a further increase in the uncontrollable circular debt.

PSO has been struggling to continue the provision of fuel, which is vital for PIA to continue its domestic and international operations.

The national flag carrier had committed to pay Rs150 million but released only Rs141 million on Monday. It had also committed to pay another Rs500 million. 'PSO is a commercial entity, how long it can bear customers on...