The National Assembly Standing Committee on Petroleum has highlighted significant financial losses in Pakistan’s gas sector, revealing that the national exchequer loses approximately Rs 60 billion every year due to theft and leakages in Sui Gas companies.
The committee convened at the Parliament House under the chairmanship of Syed Mustafa Mahmood, with key discussions focused on operational inefficiencies, rising circular debt, and potential reforms in the gas sector.
During the meeting, committee member Gul Asghar Khan urged the government to consider privatizing Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), arguing that managing gas companies is not traditionally a government function. He emphasized that the Rs 60 billion annual losses are a substantial financial burden, ultimately borne by the public.
Addressing the committee, Amir Tufail, Managing Director of Sui Northern Gas, reported that the company experiences gas losses of 5.27 percent due to leakage and theft—slightly below the targets set by the Oil and Gas Regulatory Authority (OGRA). He estimated the financial impact of these losses at around Rs 30 billion annually.
Similarly, Amin Rajput, MD of Sui Southern Gas, stated that the company’s annual losses also total Rs 30 billion. He noted a significant improvement in operational efficiency, with losses reduced from 17 percent to 10 percent over recent years.
Committee member Syed Naveed Qamar expressed deep concern over the escalating circular debt within the gas sector, warning that continued growth in arrears could threaten the survival of these companies. In response, the Director General of Gas informed the committee that the total circular debt has reached Rs 3,283 billion, including Rs 1,452 billion in late payment surcharges.
The DG Gas also briefed members on promising developments in the country’s mineral sector, revealing the discovery of lithium deposits in multiple regions, including Gilgit-Baltistan and Kotli, which could support future energy and industrial projects.
Additionally, the committee discussed the upcoming fiscal year, with a development budget of over Rs 4 billion proposed for institutions under the Petroleum Division to enhance infrastructure, operational capacity, and regulatory oversight.
