ISLAMABAD: Despite recent increases in gas prices, the circular debt in Pakistan’s gas sector has reached Rs2,897 billion, according to official documents. This debt includes Rs814 billion in late payment surcharges.
The documents detail significant debt figures for major companies in the sector. The Oil and Gas Development Company Limited (OGDCL) holds Rs1,133 billion in circular debt. Pakistan Petroleum Limited (PPL) has a circular debt exceeding Rs800 billion. Pakistan State Oil (PSO) also has a substantial amount of circular debt, totaling Rs816 billion.
The Sui Northern Gas Pipelines Limited (SNGPL) owes PSO over Rs515 billion. Furthermore, the Central Power Purchasing Agency (CPPA) generation companied have borrowed more than Rs152 billion worth of oil from the PSO.
The PSO itself owes Rs251 billion to various refineries, adding to the complexity of the debt web.
In addition to these financial issues, gas theft remains a significant problem across the country.
Officials from the Ministry of Petroleum report that gas theft has reached Rs50 billion. The highest incidence of gas theft occurs in Balochistan, with annual theft amounting to Rs25 billion. In Sindh, the annual gas theft totals Rs19 billion. In Khyber Pakhtunkhwa and Punjab, the annual gas theft amounts to Rs16 billion each.
The increasing circular debt and rampant gas theft highlight the severe challenges facing Pakistan’s gas sector. Addressing these issues will be crucial for stabilizing the sector and ensuring reliable energy supply in the future.
