Sir: The board of management of Pakistan State Oils Limited announced on 6th February 2017 that the company made a net profit amounting to Rs 10 billion (Rs 36.86 per share ) for the half year period ending on December 31, 2016 . But it is extremely surprising and shocking to know that the board of management further announced that it has decided not to declare any dividend for the shareholders for this six months period. It is appropriate to mention here that the company made a net profit of Rs 6.7 billion (Rs 24.76 per share) for the half year period ending on December 31, 2015 and declared 50 percent dividend (Rs 5 per share) I think the board of management owes an explanation to company’s shareholders as why it has not declared dividend for the shareholders despite very handsome profit? Has the net profit of Rs 10 billion invested in some company’s expansion project? Or it has been used to finance PSO’s ever increasing circular debts. I think due to ever increasing circular debts which are squeezing company liquidity, it has failed to declare dividend despite handsome net profit. Throughout the corporate world, companies use the profit earned for the benefit of its shareholders by either distributing it to the shareholders as dividend or by investing in the expansion projects of the company. Here we have a situation that company’s profit is being used to finance the circular debts. I am not convinced this is in the interest of shareholders who are the real owners of the company. I am surprised that the board of management made the following announcement but did not give any explanation as why there was no dividend despite company’s record profit. This situation defies all general norms of behaviors of the management of a big public company. I think a time has come in Pakistan that the management of public companies must hold a press conference to explain and elaborate the company performance and management various decisions at least biannually. I would like to request the honorable Prime Minister, Mian Mohamnad Nawaz Sharif, the honorable Minister of Petroleum and Natural Resources, Mr Shahid Khaqan Abbasi who is Chairman of PSO’s board of directors and the honorable Finance Minister, Mr Ishaq Dar, to take a notice of this very unusual financial story of Pakistan’s biggest public company of which government is the majority shareholder and take necessary steps to ensure company shareholders’ interest is best served. EJAZ AHMAD MAGOON Dubai