Pakistan’s gas industry is reeling from massive annual losses exceeding 30 billion rupees, primarily due to rampant theft and operational inefficiencies, as revealed in a key parliamentary session. Lawmakers have sounded the alarm, emphasizing that these financial shortfalls ultimately burden everyday consumers through higher tariffs.
In a detailed briefing to the National Assembly’s Standing Committee on Energy, chaired by Syed Mustafa Mahmood, officials from Sui Northern Gas Pipelines Limited (SNGPL) laid bare the extent of the crisis. The company is hemorrhaging around 30 billion rupees each year from gas pilferage and systemic lapses in distribution networks.
Member of National Assembly Gul Asgar Khan sharply criticized the situation, pointing fingers at industrial units engaged in unauthorized gas tapping. ‘Despite clear involvement of factories in theft, the recovery costs are slapped onto household users,’ he charged during the meeting.
According to insights shared with the committee, even losses within limits set by the Oil and Gas Regulatory Authority (OGRA) are passed on to consumers. Advanced metering systems still see unaccounted-for gas (UFG) losses climbing as high as six percent. In Sui Southern Gas Company (SSGC) territories, theft rates exceed 10 percent, equivalent to nearly 30 billion cubic feet of gas annually.
The revelations came amid broader discussions on energy sector reforms. In a parallel subcommittee meeting led by Babar Nawaz Khan, concerns over Hyderabad Electric Supply Company (HESCO) were raised, with directives for it to submit its business plan to the National Electric Power Regulatory Authority (NEPRA) by April.
Prime Minister’s interventions were highlighted, including instructions for Peshawar Electric Supply Company (PESCO) to build a 132kV grid station at a critical central node previously serving 14 feeders. Officials noted that transmission lines were extended without disrupting residential areas, though the station was later relocated—allegedly due to vested interests.
The sessions also scrutinized the misuse of energy training funds collected by petroleum firms. Committee member Syed Naveed Qamar decried the lack of effective policies, noting that these levies have not been channeled into intended training programs, further exacerbating sector inefficiencies.
As Pakistan grapples with energy shortages, these disclosures underscore the urgent need for stringent anti-theft measures and transparent governance to safeguard consumers and stabilize the economy.