Federal Minister for Petroleum Ali Pervaiz Malik has directed the Board of Sui Southern Gas Company Limited (SSGCL) to formulate a comprehensive reform strategy and sustainable business model focused on UFG control, operational efficiency and revenue recovery to make the company financially viable.
The Federal Minister issued these directions while chairing a meeting with the Chairman and Board of Directors, Managing Director and senior management of SSGCL in Karachi to review the company’s performance, achievements, operational challenges and future reform priorities.
The meeting was informed that SSGCL has significantly improved its gas distribution system, with Unaccounted-for-Gas (UFG) reduced by approximately 57 percent in volumetric terms.
The management further informed the meeting that there is no gas load shedding for K-Electric, industrial consumers and fertilizer plants, while domestic consumers are being provided gas three times a day.
Ali Pervaiz Malik noted that gas prices have not been increased for the past one year, while the increase in gas circular debt has nearly been stopped, describing these as important progress towards stabilization of the gas sector.
The Minister, however, stressed that the existing system of gas subsidies through pricing slabs needs to be revisited. He called for a transition towards a single fair gas price for all consumers, with vulnerable segments protected through targeted social protection programmes.
He said such a transition would spur greater economic activity while reducing the migration of customers to alternative fuels.
The Minister directed the SSGCL Board to prepare a comprehensive business reform strategy aimed at making the company self-sustaining, improving operational efficiency and human resource capabilities, reducing losses and gas theft, strengthening revenue recovery and ensuring better utilization of resources.
Secretary Petroleum emphasized 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 for improving the efficiency and long-term sustainability of the company.
The Minister said the Government is 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.
The meeting also discussed the situation in Balochistan. The SSGCL Board welcomed the constitution of the Political Committee under the Deputy Prime Minister to look into the province’s challenges and appreciated the initiative as a positive step towards addressing longstanding issues.
The Minister directed that gas supply issues in Balochistan be resolved on a priority basis, along with technical challenges, infrastructure constraints and gas theft.
He stressed the need for sustainable solutions to improve gas availability and service delivery in the province.
Ali Pervaiz Malik reiterated that public service must remain the top priority in all operational, financial and strategic decisions while pursuing reforms to ensure the long-term sustainability of SSGCL.
