Business

Pakistan’s gas industry is in debt by Rs. 2,897 billion.

Published

4 months ago

Farwa

In Pakistan’s gas industry, the circular debt has reached Rs2,897 billion, official papers show, despite recent rises in gas prices. Surcharges for late payments totaling Rs. 814 billion are included in this loan.

Important debt numbers for large corporations in the industry are provided in the documents. Rs 1,133 billion in circular debt is owed by the Oil and Gas Development Company Limited (OGDCL). Circular debt of more than Rs800 billion is owed by Pakistan Petroleum Limited (PPL). With a total of Rs816 billion in circular debt, Pakistan State Oil (PSO) too possesses a significant amount.

More than Rs515 billion is owed to PSO by the Sui Northern Gas Pipelines Limited (SNGPL). More than Rs152 billion worth of oil has also been borrowed by the Central Power Purchasing Agency (CPPA) generation companies.

To further complicate the web of debt, the PSO itself owes different refineries Rs251 billion.

Gas theft continues to be a major national issue in addition to these financial difficulties.

The amount of money stolen in gas, according to Ministry of Petroleum officials, has surpassed Rs 50 billion. Gas theft is most common in Balochistan, where it costs the state Rs25 billion a year. A total of Rs19 billion is stolen in gas each year in Sindh. A total of Rs16 billion is stolen of gas each year in Punjab and Khyber Pakhtunkhwa.

The significant obstacles Pakistan’s gas industry faces are exemplified by the rising circular debt and epidemic gas theft. For the industry to stabilize and for there to be a consistent supply of energy going forward, these problems must be solved.

Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

Published

1 day ago

Farwa

The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

Published

1 day ago

Farwa

The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

Business

Discos report losses of Rs239 billion.

Published

1 day ago

Farwa

When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.