Owing pound produces conflict (4)
I believe the answer is:
duel
'conflict' is the definition.
(duel is a kind of conflict)
'owing pound' is the wordplay.
'owing' becomes 'due' ('due' can be similar in meaning to 'owing').
'pound' becomes 'l'.
'due'+'l'='DUEL'
'produces' is the link.
(Other definitions for duel that I've seen before include "Combat to settle a row" , "Prearranged engagement" , "Fight to the death between two people" , "Gentlemen's disagreement" , "Fight over a point of honour" .)