SSGCL Under Pressure: Petroleum Minister Orders Major Reforms to Cut Gas Losses
KARACHI, August 27, 2026: Federal Minister for Petroleum Ali Pervaiz Malik has directed the Board of Directors of Sui Southern Gas Company Limited (SSGCL) to formulate a comprehensive reform strategy and sustainable business model aimed at improving the company’s financial viability, reducing losses and strengthening governance.
The minister chaired a meeting with the SSGCL Board, Chairman, Managing Director and senior management in Karachi to review the company’s performance, operational challenges, achievements and future reform priorities.
During the meeting, SSGCL management briefed the minister on improvements in the company’s gas distribution network. The meeting was informed that Unaccounted-for Gas (UFG) had declined by approximately 57 percent in volumetric terms, reflecting significant progress in controlling losses.
Officials also informed the minister that there was currently no gas load shedding for K-Electric, industrial consumers and fertilizer plants, while domestic consumers were receiving gas three times a day.
Focus on UFG Reduction and Financial Sustainability
Ali Pervaiz Malik emphasized that controlling UFG, gas theft and operational losses must remain a key priority for SSGCL. He directed the Board to develop measures to improve revenue recovery, operational efficiency, human resource capabilities and the utilization of company resources.
The minister said the government’s priority was to transform SSGCL into a financially sustainable organization while ensuring that public service remained at the center of its operational and strategic decisions.
He also noted that gas prices had not been increased for the past year and that the growth of gas circular debt had nearly been halted, describing these developments as important steps toward stabilization of the gas sector.
Government Seeks Review of Gas Subsidy Structure
The petroleum minister said the existing system of providing gas subsidies through pricing slabs needed to be reconsidered.
He advocated moving toward a single fair gas price for consumers, while protecting vulnerable sections of society through targeted social protection programmes.
According to the minister, such a transition could encourage greater economic activity and reduce the migration of consumers toward alternative fuels.
SSGCL Board Urged to Exercise Its Mandate
The Secretary Petroleum emphasized the independent role of the SSGCL Board under the spirit of the State-Owned Enterprises (SOE) Act.
He said the Board should fully exercise its mandate and take all necessary measures to improve SSGCL’s efficiency, performance and long-term sustainability.
The minister further said the government was working with the World Bank on comprehensive reforms in the gas sector to address structural challenges and establish a more efficient, sustainable and financially viable system.
Priority Given to Gas Supply in Balochistan
The meeting also discussed gas supply challenges in Balochistan. The SSGCL Board welcomed the formation of the Political Committee under the Deputy Prime Minister to examine the province’s longstanding challenges.
Ali Pervaiz Malik directed the relevant authorities to resolve gas supply issues in Balochistan on a priority basis while addressing technical problems, infrastructure constraints and gas theft.
He stressed that sustainable measures were needed to improve gas availability and service delivery in the province.
The petroleum minister reiterated that public service must remain the foremost priority in SSGCL’s operational, financial and strategic decisions, alongside reforms designed to secure the company’s long-term sustainability.