PSO to Wind Up Its Wholly-Owned Subsidiary | October 2025 Restructuring Update
Pakistan State Oil (PSO) has announced that it will wind up its wholly-owned subsidiary, marking a significant step in restructuring its business operations. This move is seen as part of the company’s long-term strategy to strengthen its core fuel and energy business.
✅ The decision has sparked discussions in the energy sector, as PSO remains one of the largest oil marketing companies in Pakistan.
📌 Why PSO Took This Decision
PSO has been focusing on cost optimization and improving efficiency. By winding up its wholly-owned subsidiary, the company aims to:
- Reduce operational redundancies
- Focus more on its core petroleum business
- Improve long-term profitability
- Align with future energy transition goals
📊 Experts believe this is a proactive restructuring step that will allow PSO to allocate resources more effectively.
🔎 Background of the Subsidiary
The subsidiary being wound up had been created to handle specific projects. However, over time, its role became less strategic compared to PSO’s main operations.
👉 According to PSO, maintaining a separate entity was no longer financially viable, and consolidation would bring better results.
📊 Subsidiary Performance Overview
Here’s a quick snapshot of how the subsidiary performed in recent years:
| Year | Revenue (PKR Billion) | Profit/Loss (PKR Million) | Status |
|---|---|---|---|
| 2022 | 5.2 | -150 | Loss |
| 2023 | 4.8 | -220 | Loss |
| 2024 | 3.9 | -310 | Loss |
📉 As shown, the subsidiary has been posting losses consistently, which explains why PSO decided to shut it down.
🚀 Future Outlook for PSO
With this decision, PSO plans to:
- Strengthen its supply chain and retail operations
- Invest more in energy infrastructure
- Focus on LNG and alternative fuels
- Continue as a leading energy provider in Pakistan
🌍 Industry experts also suggest that PSO may expand into renewable energy in the coming years, given the global energy shift.
🔔 Final Thoughts
The step by PSO to wind up its wholly-owned subsidiary reflects a strategic business decision to stay competitive in the energy sector. By streamlining its operations, PSO is set to focus more on growth areas while minimizing unprofitable ventures.
