The National Assembly’s Standing Committee was informed that gas theft and leakages in the country’s two major gas utilities are causing an annual loss of Rs60 billion to the national exchequer.
The meeting of the National Assembly Standing Committee was held at Parliament House under the chairmanship of Syed Mustafa Mahmood. During the session, committee member Gul Asghar Khan called for privatization of both gas companies Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) stating that running businesses is not the government’s job.
He said annual losses of Rs60 billion were not a minor issue and that the burden ultimately falls on the public.
Managing Director of SNGPL, Aamer Tufail, informed the committee that Sui Northern’s gas losses due to leakage and theft stand at 5.27 per cent, which is even lower than the targets set by Oil and Gas Regulatory Authority (OGRA). He added that the estimated annual financial impact of these losses is around Rs30 billion.
Similarly, Managing Director of SSGC, Amin Rajput, said his company’s annual losses also amount to Rs30 billion. However, he noted that losses have been reduced from 17 per cent to 10 per cent through improved management and monitoring.
Committee member Syed Naveed Qamar expressed concern over the rising circular debt in the gas sector, warning that the growing financial burden could push gas companies towards collapse. In response, the Director General (Gas) informed the committee that the total circular debt in the gas sector has reached Rs3,283 billion, including Rs1,452 billion in late payment surcharges.
The DG Gas further briefed the committee that lithium reserves have been identified in various parts of the country, including Gilgit-Baltistan and Kotli.
In addition, a proposal of over Rs4 billion in development budget has been presented for institutions under the Petroleum Division for the upcoming fiscal year.
