The Finance Ministry has expressed serious concerns about the financial health of major oil and gas companies in Pakistan. Key players like Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDCL), Sui Southern Gas Company (SSGC), and Sui Northern Gas Pipelines Limited (SNGPL) are facing outdated systems and management inefficiencies.
According to sources, the infrastructure supporting these companies is no longer efficient. This outdated setup is creating challenges that are impacting their overall performance. The financial management of these organizations has been labeled as ineffective, further deepening the issues within the sector.
One of the biggest problems is the rising circular debt in the energy sector. This debt is making it harder for companies to maintain healthy cash flows. SNGPL and SSGC, in particular, are struggling with unpaid receivables, which have weakened their financial stability. To cover operational needs, they are increasingly dependent on government support.
Experts believe that the aging technology used in these companies is another major hurdle. The outdated systems are leading to higher operational costs and lower production levels. This inefficiency is not only hurting the companies but is also impacting the broader energy sector.
In addition, losses in gas transmission and distribution systems are piling up. A better approach to business planning could help reduce these losses. By strengthening financial systems and adopting modern technology, these companies can improve their operational efficiency and minimize revenue losses.
The Finance Ministry has stressed that fixing these issues is crucial for reducing circular debt and improving the overall economic stability of the sector. A comprehensive overhaul of financial systems, combined with modernized infrastructure, could pave the way for a more sustainable future for Pakistan’s oil and gas industry.
This call to action highlights the urgent need for reforms to ensure these key entities can meet the energy demands of the country effectively and efficiently.
