How is Pakistan's gas sector facing Rs 30 billion in annual losses?
Synopsis
Pakistan's gas sector is in turmoil as it faces staggering losses of Rs 30 billion annually due to theft and inefficiencies. Lawmakers emphasize the dire impact on consumers. This report uncovers the alarming state of affairs in the energy sector and calls for urgent reforms to protect consumers from these losses.
Key Takeaways
Annual losses in Pakistan's gas sector reach Rs 30 billion.
Consumers bear the burden of these losses.
Gas theft is a significant contributor to financial inefficiencies.
Transparency and effective policymaking are crucial for reform.
Advanced monitoring systems can reduce unaccounted for gas losses.
Islamabad, Feb 21 (NationPress) The gas sector in Pakistan experiences annual losses reaching 30 billion Pakistani rupees due to theft and operational inefficiencies, with legislators cautioning that this financial strain ultimately impacts consumers, according to reports from local media on Saturday.
A meeting of the National Assembly Standing Committee on Energy, led by Syed Mustafa Mahmood, revealed these staggering losses. Officials from the gas sector reported that Sui Northern Gas Pipelines Limited faces losses of approximately Rs30 billion attributed to both theft and inefficiencies in operations.
Member of the National Assembly Gul Asghar Khan claimed that while industrial entities are involved in gas theft, the financial consequences are being unfairly shifted onto domestic consumers.
Officials further indicated that losses recognized within the limits set by Pakistan’s Oil and Gas Regulatory Authority (OGRA) are also passed on to consumers, highlighting that in even advanced systems, unaccounted for gas (UFG) losses can soar to six percent, as reported by the Pakistani daily 'The Express Tribune.'
The committee learned that gas theft within Sui Southern Gas Company exceeds 10 percent, amounting to nearly 30 Billion Cubic Feet (BCF) annually, with total yearly losses from theft and inefficiencies reaching a staggering Rs30 billion.
In a separate discussion, the National Assembly's Subcommittee on Energy, chaired by Babar Nawaz Khan, was informed that Hyderabad Electric Supply Company (HESCO) is set to present its business plan to Pakistan's National Electric Power Regulatory Authority (NEPRA) before April.
The committee convenor mentioned that the Pakistani Prime Minister has reached out to Peshawar Electric Supply Company (PESCO) regarding the establishment of a 132kV grid station at a site that previously functioned as a central hub connecting 14 feeders.
Officials noted that the transmission line has been extended without impacting any residential areas, and the grid station was later moved to a different location.
During this meeting, the committee also discussed energy training funds gathered by petroleum companies. Committee member Syed Naveed Qamar remarked that these funds have not been utilized for their intended goals, highlighting the lack of effective policymaking.
Point of View
It is crucial to address the alarming losses in Pakistan's gas sector. The financial burden on consumers due to theft and inefficiencies calls for immediate governmental action. A transparent and effective policy framework is essential to safeguard consumers and ensure the integrity of our energy supply.
NationPress
6 May 2026
Frequently Asked Questions
What are the main causes of losses in Pakistan's gas sector?
The primary causes of losses in Pakistan's gas sector include theft and operational inefficiencies, which cumulatively amount to Rs 30 billion annually.
How does gas theft affect consumers?
Gas theft results in significant financial losses that are ultimately transferred to consumers, leading to higher gas prices and financial burdens on households.
What steps can be taken to mitigate these losses?
Implementing stricter regulations, enhancing monitoring systems, and promoting transparency in the gas supply chain can help reduce theft and inefficiencies.
