PSO proposes swapping debt for stake in public sector companies

Pakistan State Oil (PSO) said it is in talks with the government on a plan to acquire stakes in public sector energy companies and offset mounting debt it is owed by firms such as the national airline.

Stopping the pile-up of unresolved debt across the country’s power sector, and ultimately settling it, is a top concern of the International Monetary Fund (IMF), with which the government will begin talks this month for a new long-term loan deal.

“Everything will be done through competitive...