Karachi January 11 2023: Pakistan Finance Minister announced to clear gas sector circular debt through method other than burdening masses.
“We are preparing a comprehensive circular debt resolution plan to reduce its quantum in a way that it does not put pressure on masses. We will try to reduce it through dividend payments” says finance minister Ishaq Dar.
Finance minister does not disclose further details of the plan to resolve the circular debt in the oil and gas sector that has surged to PKR 1,500 billion.
The Sui Gas companies are running into huge losses of PKR 677 billion because of not increasing the gas prices; if the situation continues unabated, then their loss will increase up to PKR 757 billion by June 2023.
Right now, the gas rates for residential consumer stand at PKR 450 per MMBTU in the Sui Southern system against the prescribed price of PKR 850 per MMBTU and PKR 400 per MMBTU in the Sui Northern system against the prescribed price of PKR 1,007 per MMBTU, showing a gap between sale gas price and actual cost of gas, which is too large.