Malik calls for uniform gas pricing model

ISLAMABAD: Federal Petroleum Minister Ali Pervaiz Malik has called for replacing the current slab-based gas subsidy system with a uniform pricing model for all consumers. Speaking at a meeting of the Board Members of Sui Southern Gas Company Limited (SSGCL) held in Karachi on Thursday, the minister advocated relying on targeted social safety net programs to safeguard consumers’ interests. A single and fair gas price would stimulate economic growth and stop consumers from shifting to alternative energy sources. He directed the SSGCL to develop a comprehensive strategy and sustainable business model with special focus on UFG control to transform SSGCL into a financially viable organisation, with public service as the foremost priority. READ MORE: Govt plans deregulation, unbundling of Sui companies The meeting reviewed the company’s performance, key achievements, operational challenges, and future reform priorities. The Chairman of the SSGCL Board welcomed the Federal Minister, while the Managing Director briefed the Minister on the company’s milestones, achievements and challenges. The management highlighted a significant improvement in the company’s gas distribution system, with UFG reduced by approximately 57 percent in volumetric terms. The meeting was informed that there is no gas load shedding for K-Electric, industrial consumers and fertiliser plants, while domestic consumers are being provided gas three times a day. The federal minister highlighted that gas prices have not been increased for the past year, while the increase in gas circular debt has nearly been stopped, marking important progress towards stabilisation of the gas sector. He urged the SSGCL Board to formulate a comprehensive business reform strategy focused on making the company self-sustaining, improving operational efficiency, HR capabilities, reducing losses and gas theft, strengthening revenue recovery and ensuring better utilisation of resources. Secretary Petroleum, during the meeting, emphasised that the Board operates independently in accordance with the spirit of the State-Owned Enterprises (SOE) Act. He said the Board should exercise its mandate and take all necessary measures required for the betterment, efficiency, and long-term sustainability of SSGCL. The Minister said the Government is already working with the World Bank on comprehensive gas sector reforms, aimed at addressing structural challenges and creating a more efficient, sustainable and financially viable gas sector. Discussing the situation in Balochistan, the SSGCL Board welcomed the constitution of the Political Committee under the Deputy Prime Minister to look into the province’s challenges and appreciated the initiative as a positive step towards addressing longstanding issues in Balochistan. The Minister directed that gas supply issues in Balochistan be resolved on a priority basis, alongside addressing technical challenges, infrastructure constraints and gas theft. He stressed the need for sustainable solutions to improve gas availability and service delivery in the province. Copyright Business Recorder, 2026

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