Pakistan’s Gas Sector Debt Hits Rs. 3.28 Trillion, Lawmakers Warn of Potential Collapse
Pakistan’s gas sector circular debt has surged to an alarming Rs. 3.283 trillion, prompting urgent warnings from lawmakers about the risk of a systemic collapse. The issue was discussed in detail during a meeting of the National Assembly Standing Committee on Petroleum.
Officials highlighted growing financial stress across the gas supply chain, citing mounting losses, operational inefficiencies, and persistent pricing gaps as key drivers of the debt. Lawmakers stressed that without immediate reforms, the escalating liabilities could further strain consumers and destabilize the energy sector.
The circular debt issue reflects structural challenges in Pakistan’s gas industry, where supply, billing, and collection inefficiencies have accumulated over time. Industry experts note that delayed payments to suppliers, subsidy mismatches, and inadequate cost recovery have all contributed to the mounting debt.
Members of the committee emphasized the need for comprehensive policy interventions to restore financial health. Potential measures include revising pricing mechanisms, improving governance in distribution companies, and ensuring timely revenue collection to prevent further accumulation.
The growing debt burden not only threatens energy security but also risks undermining investor confidence and long-term sector sustainability. Lawmakers warned that continued financial mismanagement could have ripple effects on electricity generation, industrial operations, and household energy availability.
Officials reiterated that structural reforms and fiscal discipline are critical to preventing a collapse in the gas supply system. With the sector playing a pivotal role in Pakistan’s energy mix, policymakers are under pressure to act decisively to contain the crisis.
The meeting underscored that immediate attention to the circular debt issue is essential to stabilize the market, safeguard consumers, and secure the country’s energy infrastructure for the future.
