KARACHI: The government is reviewing Pakistan’s gas subsidy mechanism and pricing slabs as part of broader reforms aimed at improving the financial sustainability and operational efficiency of Sui Southern Gas Company Limited (SSGC).
Federal Minister for Petroleum Ali Pervaiz Malik chaired a high-level meeting of SSGC, where the company’s performance, gas distribution system and ongoing reform measures were reviewed.
The minister directed the SSGC board to strengthen the company’s financial sustainability and address persistent management and operational challenges.
He said the existing gas subsidy structure and pricing slabs needed to be reassessed, while stressing the importance of moving towards a fairer and more uniform gas pricing mechanism for consumers.
At the same time, he said vulnerable households should continue to receive protection through targeted social safety programmes rather than broad-based subsidies.
According to a briefing presented during the meeting, SSGC has recorded a significant improvement in its gas distribution system, with unaccounted-for gas (UFG) losses reduced by 57%.
The company’s managing director also informed the meeting that K-Electric, industrial consumers and fertilizer plants are currently not facing gas load-shedding.
Domestic consumers, meanwhile, are being supplied gas three times a day under the existing schedule.
The petroleum minister also directed SSGC to address gas supply problems in Balochistan on a priority basis, including issues related to gas theft, technical faults and infrastructure constraints.
He said the company’s board must focus on improving operational performance, strengthening revenue recovery and ensuring better use of available resources.
Malik stressed that reducing gas theft and system losses was critical for SSGC’s long-term financial viability.
He also said that gas prices have not been increased for the past year, while growth in the gas sector’s circular debt has been largely contained.
The government is also working with the World Bank on wider gas-sector reforms aimed at improving efficiency, pricing structures and financial discipline.
The latest directives come as authorities seek to address longstanding problems in Pakistan’s gas sector, including system losses, subsidy distortions, uneven pricing and mounting financial pressures on public-sector gas utilities.
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