WB-backed gas sector reforms in focus

Federal Minister for Petroleum Ali Pervaiz Malik has asked the board of Sui Southern Gas Company (SSGC) to prepare a full strategy and a long-term business model. According to The Express Tribune, the focus should be on reducing unaccounted-for-gas (UFG) losses, with the aim of putting the company on firmer financial footing. The directive came during a Karachi meeting with SSGC's chairman, managing director and top executives.

Management told the minister that UFG had fallen 57% in volumetric terms, a notable gain in the distribution system. The meeting heard that K-Electric, industrial users and fertiliser plants were getting gas without load-shedding, while households received supply three times a day. Malik also observed that gas prices had stayed unchanged for a year, and that growth in gas circular debt had nearly halted.

Malik said the existing subsidy system, which works through gas pricing slabs, needs to be revisited. He called for a single fair price for all consumers, with vulnerable groups protected through targeted social programmes, arguing this would support economic activity and discourage customers from switching to other fuels. He also said the government is cooperating with the World Bank on wider gas sector changes meant to fix structural problems.