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.
