Petroleum Minister Ali Pervaiz Malik on Thursday directed the Board of Sui Southern Gas Company Limited (SSGCL) to develop a comprehensive strategy and sustainable business model with special focus on UFG control to transform itself into a financially viable organization, with public service as the foremost priority.
Chairing a meeting with the chairman and Board of Directors, managing director and senior management of SSGCL in Karachi to review the company’s performance, key achievements, operational challenges and future reform priorities, the minister said gas prices had remained constant for one year. Additionally, he said, increases to the circular debt had nearly stopped, marking important progress towards stabilization of the gas sector.
Earlier, the SSGCL Board chairman welcomed the minister, while the managing director briefed him on the company’s milestones, achievements and challenges. The management highlighted a significant improvement in the company’s gas distribution system, with UFG reduced by approximately 57% in volumetric terms. The meeting was also informed there was no gas load shedding for K-Electric, industrial consumers and fertilizer plants, and domestic consumers were receiving gas thrice daily.
Malik said the existing system of gas subsidies via pricing slabs must be revisited, emphasizing the need to transition to a single fair gas price for all consumers. Vulnerable segments of society, he said, should be protected through targeted social protection programs, maintaining this would boost economic activity while quelling migration of customers to alternative fuels.
He urged the SSGCL Board to formulate a comprehensive business reform strategy focused on making the company self-sustaining, improving operational efficiency, HR capabilities, reducing losses and gas theft, strengthening revenue recovery and ensuring better utilization of resources.
During the meeting, the petroleum secretary emphasized that the Board operates independently in accordance with the spirit of the State-Owned Enterprises Act. He said the Board should exercise its mandate and take all necessary measures required for the betterment, efficiency and long-term sustainability of SSGCL.
The minister said the government was already working with the World Bank on comprehensive gas sector reforms, aimed at addressing structural challenges and creating a more efficient, sustainable and financially viable gas sector.
Discussing the situation in Balochistan, the SSGCL Board welcomed the constitution of the Political Committee under Deputy Prime Minister Ishaq Dar to look into the province’s challenges and appreciated the initiative as a positive step towards addressing longstanding issues.
The minister directed priority resolution of gas supply issues in Balochistan, alongside addressing technical challenges, infrastructure constraints and gas theft. He stressed the need for sustainable solutions to improve gas availability and service delivery in the province. He said public service must remain the top priority in all operational, financial and strategic decisions, while pursuing reforms to ensure the long-term sustainability of the company.