Pakistan's gas sector is facing a critical challenge as circular debt reaches a staggering Rs3.283 trillion, according to a recent report. Lawmakers have issued a stark warning: without immediate action, the industry's financial strain could lead to a system collapse, impacting consumers further. This crisis has sparked intense debate, with calls for structural reforms, including privatization, to address the losses at state-run utilities. The situation is dire, with rising debt and inefficiencies posing a significant threat to the industry's stability. The Director General of Gas, Abdul Rasheed Jokhio, highlighted the sector's deep-rooted financial stress, emphasizing the need for urgent intervention. The Managing Director of Sui Northern Gas Pipelines Limited (SNGPL), Amir Tufail, reported a reduction in theft and leakage losses, but annual financial losses remain substantial. The Sui Southern Gas Company's losses have also been reduced, but the combined impact on consumers is still significant. The call for privatization has intensified, with committee members arguing that the government should focus on core functions rather than operating gas companies. However, the process must be carefully managed to avoid monopolies and ensure competition and consumer protection. Meanwhile, the Petroleum Division seeks development funding for various projects, including an explosives tracking system, geological surveys, and initiatives by the Hydrocarbon Development Institute of Pakistan. Despite the financial challenges, the discovery of lithium reserves in Gilgit Baltistan and Kotli offers potential new avenues for mineral exploration, providing a glimmer of hope for the gas sector's future.
