Karachi: PSO demonstrated a notable improvement in cash collection during the fourth quarter of fiscal year 2024, reaching 112% receivable collection and decreasing trade debts by PkR36 billion compared to the previous quarter. This financial milestone has contributed to positive operating cash flows for the first time since FY21.

According to AKD Securities Limited, the increased liquidity was facilitated by the rationalization of consumer gas prices and the incorporation of Regulated Liquified Natural Gas (RLNG) diversion costs into gas tariffs. This financial maneuver has significantly reduced major liabilities for PSO, including short-term debt and trade payables, by a total of PkR51.5 billion. AKD Securities maintains a ‘BUY’ recommendation on PSO with a target price of PkR290 per share by June 2025, and anticipates a dividend yield of 11% for FY25E.