The National Assembly Standing Committee was informed that gas theft and leakages in the Sui gas companies are causing an annual loss of approximately Rs60 billion to the national exchequer, posing a serious challenge for the energy sector.
The committee meeting was held at Parliament House under the chairmanship of Syed Mustafa Mahmood, where member Gul Asghar Khan called for the privatization of Sui Southern Gas Company and Sui Northern Gas Pipelines Limited, stating that running commercial enterprises should not be the government’s responsibility.
Gul Asghar Khan remarked that annual losses of Rs60 billion incurred by the two gas companies are significant, and ultimately the financial burden is borne by the public.
Managing Director of Sui Northern, Amir Tufail, informed the committee that the company’s gas losses due to theft and leakages stand at 5.27 percent, which is lower than the targets set by OGRA, while the estimated financial impact of current losses is around Rs30 billion annually.
Similarly, Sui Southern Managing Director Ameen Rajput stated that his company also faces annual losses of approximately Rs30 billion; however, the loss ratio has been reduced from 17 percent to 10 percent, which he attributed to improved management measures.
During the meeting, committee member Syed Naveed Qamar expressed concern over the growing circular debt in the gas sector, warning that if the situation continues, gas companies could face severe financial distress. The Director General of 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 revealed that lithium reserves have been identified in various regions of the country, including Gilgit-Baltistan and Kotli, which could prove significant for the future of the energy and minerals sector.
Additionally, a development budget proposal of over Rs4 billion for the Petroleum Division’s institutions for the upcoming fiscal year was presented during the meeting, aimed at improving sectoral performance.
