KARACHI, April 22, 2026 – Sui Northern Gas Pipelines Limited (SNGPL) on Wednesday clarified a disputed tax demand raised by authorities, stating that the matter is historical in nature and has no impact on the company’s current or future financial position.
In a communication to the Pakistan Stock Exchange (PSX), the company addressed a recent media report regarding a decision by the Lahore High Court (LHC) related to the Cost Equalization Adjustment (CEA).
SNGPL said the issue stems from a tax dispute arising from the disallowance of CEA by tax authorities. The company explained that the adjustment was made under a mechanism introduced in 2003 by the Economic Coordination Committee (ECC), approved by the federal government and the Oil and Gas Regulatory Authority (OGRA), to ensure uniform gas pricing across Pakistan.
The company emphasized that the related expenditure had already been recorded in its financial statements and incorporated into OGRA’s tariff determinations for the relevant periods. As a result, SNGPL said there would be no incremental financial impact on its profitability.
Referring to the court ruling, SNGPL stated that the Lahore High Court had decided the matter in its favor, recognizing the expenditure as “wholly and exclusively for the purpose of business.”
The company further clarified that the reported development does not create any new financial obligation or liability and does not affect its current or future financial standing.
SNGPL reaffirmed its compliance with all regulatory and disclosure requirements, adding that the matter does not constitute price-sensitive information as it has already been accounted for and remains financially neutral.