Circular Debt flow to be quelled: Petroleum Minister Announces Major relief
Islamabad: 12th meeting of the National Assembly Standing Committee on Petroleum was held under the chairmanship of Syed Mustafa Mehmood, during which key developments in the gas and LNG sector were reviewed.
Federal Minister for Petroleum Ali Pervaiz Malik informed the Committee that successful negotiations with Qatar have been concluded to divert Pakistan’s surplus LNG cargoes to the international market, while respecting contractual obligations. He stated that Qatar has been a valuable and reliable supplier, honoring its commitments at a time when many global suppliers defaulted. Pakistan highly values this strategic relationship and has reached a mutually acceptable solution regarding excess LNG cargoes.
Highlighting the impact of ongoing reforms, the Federal Minister announced that on the directions of Prime Minister Muhammad Shahbaz Sharif gas prices will not be increased for the next six months in any category, providing major relief to consumers. The gas prices will remain same for all consumers for the next six months of current fiscal year. He further briefed that the circular debt flow in the gas sector has been quelled, and there is no creation of fresh circular debt, marking a significant milestone in gas sector reforms. He added that enhanced gas supply is being provided to domestic consumers across the country. No domestic field is presently under curtailment. Power is being gas beyond its IGCEP demand to avoid loadshedding.
The Managing Directors of the SUI companies briefed the Committee on operational improvements. It was informed that enhanced gas supply is being provided to domestic consumers across the country, in line with the directions of Prime Minister Muhammad Shahbaz Sharif, to ensure maximum relief to the public during the winter season.
SNGPL reported a substantial reduction in Unaccounted-for Gas (UFG) losses from 9% to 5%, while SSGC reported that UFG losses have been reduced from 17% to 10%.
The Committee was also apprised that IoT-based monitoring systems, including Town Border Stations, have been deployed at gas network tail ends to automatically generate alarms in case of pressure drops, improving real-time monitoring and service delivery.
MD SNGPL further informed that gas supply hours have been extended from 5:00 am to 10:00 pm in line with the directions of Prime Minister Muhammad Shahbaz Sharif, to ensure maximum relief to the public during the winter season. Federal Minister Ali Pervaiz Malik also added that government is working for capacity building of Directorate General of Petroleum Concessions in consultation with World Bank.
The Chairman and Members of the Standing Committee appreciated the progress made through reforms, improved governance, and enhanced consumer-focused measures in the petroleum and gas sector.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
