Key Takeaways:
– Pakistan’s gas sector’s circular debt has reached Rs2,897 billion.
– Major companies like OGDCL, PPL, and PSO hold significant portions of this debt.
– Gas theft is a critical issue, costing the country Rs50 billion annually.
Despite recent hikes in gas prices, Pakistan’s gas sector is grappling with a circular debt that has soared to Rs2,897 billion, as per official documents. This staggering debt includes Rs814 billion in late payment surcharges.
Major Companies’ Debt Breakdown
The documents reveal significant debt figures for key players in the sector:
– Oil and Gas Development Company Limited (OGDCL): Rs1,133 billion in circular debt.
– Pakistan Petroleum Limited (PPL): Over Rs800 billion.
– Pakistan State Oil (PSO): Rs816 billion in circular debt.
Inter-Company Debt Obligations
– Sui Northern Gas Pipelines Limited (SNGPL): Owes PSO over Rs515 billion.
– Central Power Purchasing Agency (CPPA): Generation companies have borrowed over Rs152 billion worth of oil from PSO.
– PSO: Owes Rs251 billion to various refineries, adding to the debt complexity.
Gas Theft Issues
In addition to financial woes, gas theft remains a significant problem:
– National Impact: Gas theft amounts to Rs50 billion annually.
– Regional Breakdown:
– Balochistan: Rs25 billion annually.
– Sindh: Rs19 billion annually.
– Khyber Pakhtunkhwa and Punjab: Rs16 billion each annually.
Challenges and Future Outlook
The growing circular debt and widespread gas theft underscore the severe challenges facing Pakistan’s gas sector. Addressing these issues is vital for stabilizing the sector and ensuring a reliable energy supply in the future.
