Business

Govt denies 24-hour gas supply to consumers as reserves dry up

Published

2 years ago

Farwa

“Gas loadshedding will end during sehri and iftar,” minister says.
“We cannot provide gas 24 hours as our reserves have dropped.”
“The gas bill of the rich and poor has been separated,” he says.

KARACHI: Minister of State for Petroleum Musadik Malik said Wednesday that the masses cannot get gas 24/7, attributing a drop in the commodity’s reserves as a major reason.

Pakistan is highly reliant on natural gas for energy, and with rising demand and insufficient supply, loadshedding has become a daily occurrence in many areas of the nation.

This scenario worsens during Ramadan when Pakistanis use more gas for cooking and other reasons, especially during sehri and iftar timings.

But the minister, in conversation with journalists in Karachi, without giving an exact time, said the gas loadshedding would end during sehri and iftar. “We cannot provide gas 24 hours as our reserves have dropped.”

The issue of gas starvation in Karachi caught Prime Minister Shehbaz Sharif’s attention recently, and he directed relevant officials to ensure an uninterrupted supply of the commodity.

He said the process of supply of gas should be supervised and no negligence should be tolerated.

Owing to the widening gap between gas supply and demand, the Sui Southern Gas Company (SSGC) last week announced its decision to suspend supplies to captive power plants and industries.

The gas utility said that the decision has been taken considering the low supply of gas. It stated that due to a reduction in supply, the volume of gas in pipelines has decreased.

In response, the Karachi Chamber of Commerce and Industry (KCCI) called for immediate government action over the shortage of gas supply to Karachi industries, saying the industries could not function without gas and would be forced to halt production.

“It’s highly unfair to have such an attitude towards Karachi’s business community which, despite facing so many odds and challenges, contributes around 54% in terms of exports and more than 68% in terms of revenue,” KCCI president Muhammad Tariq Yousuf said.

Malik, while talking to journalists, said his visit to Karachi was based on resolving the gas supply issues that the people are facing and urged them to ensure payment of their utility bills.

“The gas bill of the rich and poor has been separated; rich people will have to pay more now,” the minister of state for petroleum said.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

8 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

9 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.