Ali Pervaiz Malik seeks reforms to reduce gas losses, improve revenue recovery and make SSGCL financially viable
Federal Minister for Petroleum Ali Pervaiz Malik has directed the Board of Sui Southern Gas Company Limited (SSGCL) to formulate a comprehensive strategy and sustainable business model focused on controlling unaccounted-for gas (UFG) and transforming the company into a financially viable organisation.
Chairing a meeting with the SSGCL Chairman, Board of Directors, Managing Director and senior management in Karachi, the minister reviewed the company’s performance, achievements, operational challenges and reform priorities.
SSGCL management briefed the minister on a significant improvement in the company’s gas distribution system, with UFG declining by approximately 57% in volumetric terms.
The meeting was also informed that there is currently no gas load-shedding for K-Electric, industrial consumers and fertiliser plants, while domestic consumers are receiving gas three times a day.
Ali Pervaiz Malik noted that gas prices had not been increased for the past year, while the increase in gas circular debt had nearly been halted, describing these developments as important progress towards stabilising the gas sector.
Minister calls for overhaul of gas subsidy system
The minister said the existing system of gas subsidies through pricing slabs needed to be revisited.
He stressed the need to move towards a single fair gas price for all consumers, with vulnerable sections of society protected through targeted social protection programmes.
According to the minister, such a transition could encourage greater economic activity while reducing the migration of consumers towards alternative fuels.
He directed the SSGCL Board to prepare a comprehensive business reform strategy aimed at making the company self-sustaining and improving its overall performance.
The strategy should focus on improving operational efficiency and human resource capabilities, reducing gas losses and theft, strengthening revenue recovery and ensuring more effective utilisation of resources.
SSGCL urged to address losses and gas theft
The Secretary Petroleum emphasised that the SSGCL Board operates independently in accordance with the spirit of the State-Owned Enterprises (SOE) Act.
He said the Board should exercise its mandate and take all necessary measures to improve the company’s efficiency and ensure its long-term sustainability.
The minister said the government was already working with the World Bank on comprehensive reforms in the gas sector to address structural challenges and establish a more efficient, sustainable and financially viable system.
Balochistan gas supply given priority
The meeting also discussed the situation in Balochistan. The SSGCL Board welcomed the formation of a Political Committee under the Deputy Prime Minister to examine the province’s challenges, describing the initiative as a positive step towards resolving longstanding issues.
Ali Pervaiz Malik directed that gas supply issues in Balochistan be addressed on a priority basis.
He also called for solutions to technical problems, infrastructure constraints and gas theft affecting the province, stressing the need for sustainable measures to improve gas availability and service delivery.
The minister reiterated that public service must remain the foremost priority in SSGCL’s operational, financial and strategic decisions, while reforms should be pursued to secure the company’s long-term financial and operational sustainability.