Islamabad August 5 2023: Government finalized modalities and framework to bring sustainability in the energy sector including reduction in the circular debt in gas sector.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired a meeting on reforms in the Energy Sector at Finance Division today.
The meeting conversed about the ongoing issues in the Energy sector, particularly the issue of Circular debt in the gas sector, and discussed and finalized modalities and framework to be followed in order to bring sustainability in the energy sector including reduction in the circular debt in gas sector.
ange in input costs (fuel, exchange, and interest rates), generation mix, prior-year recoveries.
Partially available data suggest that the CD stock in the gas sector (also including petroleum and late payment fees) has also grown rapidly and is now almost on par with that in the power sector. The main drivers remain below cost-recovery prices from
delays in regular biannual tariff adjustments (since September 2020), high operational losses (especially from unaccounted for gas losses (UFG) and collection shortfalls), and uncovered subsidies (especially for export and zero-rated industries). To avoid burdening the budget
with additional subsidies, the government implemented a 75 percent gas price hike in mid-February 2023.
The Finance Minister reiterated the priority of the government to address the issues of the energy sector to improve the macro-economic indicators of Pakistan and to enhance economic growth of the country.
Minister of State for Petroleum Division Mr. Musadik Masood Malik, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Pasha, and senior officers from Finance and Petroleum Division attended the meeting.