WB-backed gas sector reforms in focus

Federal Minister for Petroleum Ali Pervaiz Malik has directed the board of Sui Southern Gas Company (SSGC) to develop a comprehensive strategy and sustainable business model with special focus on unaccounted-for-gas (UFG) loss control to transform the company into a financially viable organisation.

In a meeting with the chairman, managing director and senior management of SSGC in Karachi, the minister reviewed the company's performance, key achievements, operational challenges and future reform priorities. The management highlighted a significant improvement in the company's gas distribution system, with UFG reduced by 57% in volumetric terms.

The meeting was informed that there was no gas load-shedding for K-Electric, industrial consumers and fertiliser plants, while domestic consumers were being provided gas three times a day. Malik observed that gas prices had not been increased for the past one year, while the increase in gas circular debt had almost been stopped, marking significant progress towards stabilisation of the gas sector.

The minister said that the existing system of gas subsidies via pricing slabs needed to be revisited. He emphasised the need for transitioning to a single fair gas price for all consumers, while vulnerable segments be protected through targeted social protection programmes. This transition will spur greater economic activity while preventing migration of customers to alternative fuels.

The minister said the government was already working with the World Bank on comprehensive gas-sector reforms, aimed at addressing structural challenges and creating a more efficient, sustainable and financially viable gas sector.