Minister for Petroleum Ali Pervaiz Malik has directed the Board of Sui Southern Gas Company Limited (SSGCL) to formulate a comprehensive strategy and sustainable business model aimed at improving the company's financial position, operational efficiency, and service delivery. The minister issued the directives while chairing a meeting with the SSGCL chairman, board of directors, managing director, and senior management in Karachi on Thursday to review the company's performance, achievements, operational challenges, and future reform priorities.
The meeting was informed that SSGCL has achieved a significant improvement in its gas distribution system, with unaccounted-for-gas (UFG) reduced by approximately 57 percent in volumetric terms. Officials also briefed the minister that there is currently no gas load-shedding for K-Electric, industrial consumers, and fertilizer plants, while domestic consumers are being supplied gas three times a day.
Malik said gas prices have not been increased for the past year and that the increase in gas-sector circular debt has nearly been stopped, describing the developments as progress towards the stabilization of the sector. He directed the SSGCL board to focus on further reducing UFG, gas theft, and operational losses, improving revenue recovery, strengthening human-resource capabilities, and ensuring more efficient use of company resources.
The minister also called for the development of a business reform strategy to make SSGCL self-sustaining while maintaining public service as its foremost priority. On gas pricing, Malik said the existing system of subsidies through pricing slabs needed to be reviewed. He advocated a transition towards a single fair gas price for consumers, with vulnerable segments protected through targeted social-protection programmes.
The Secretary for Petroleum told the meeting that the SSGCL board should operate independently in accordance with the spirit of the State-Owned Enterprises Act (SOE Act). He urged the board to exercise its mandate and take necessary measures to improve the company's efficiency and long-term sustainability. The meeting was also informed that the government is working with the World Bank on comprehensive gas-sector reforms to address structural issues and improve the efficiency and financial sustainability of the sector, while issues in Balochistan were also discussed.