Gas Theft Causes Rs 60 Billion Annual Loss

Islamabad: (Web Desk) – The National Assembly’s Standing Committee has revealed that gas theft and leakages in Pakistan’s Sui gas companies are causing an annual loss of Rs 60 billion to the national treasury.

The committee meeting, chaired by Syed Mustafa Mehmood, saw member Gul Asghar Khan call for the privatization of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), arguing that running businesses is not a government function and losses ultimately burden the public.

The Managing Director of Sui Northern, Amir Tufail, reported that gas losses due to leakage and theft in SNGPL are 5.27%, below OGRA’s target, amounting to an estimated Rs 30 billion annually. Similarly, MD of Sui Southern, Ameen Rajput, stated their company also faces Rs 30 billion in annual losses, reduced from 17% to 10%.

Pakistan gas sector circular debt rises to Rs3.2 trillion level

Committee member Syed Naveed Qamar expressed concern over rising circular debt in the gas sector, warning that continued growth could collapse the companies. The DG Gas confirmed that the total circular debt stands at Rs 3,283 billion, including Rs 1,452 billion in late payment surcharges.

The DG Gas also highlighted the identification of lithium reserves in various regions, including Gilgit-Baltistan and Kotli, signaling potential new energy resources for Pakistan. Additionally, a development budget of over Rs 4 billion has been proposed for petroleum division institutions in the upcoming fiscal year.