Petroleum minister calls for holistic energy policy, vows action on circular debt

KARACHI: Minister for Petroleum Ali Pervaiz Malik on Friday emphasised the need for adopting a holistic energy policy to address Pakistan’s growing energy challenges.

Speaking to the media during a visit to the Sui Southern Gas Company (SSGC) head office, the minister outlined the broader energy landscape in the context of economic constraints.“The energy sector is like oxygen for the economy,” he said. “We are taking steps to align supply and tariffs with international market trends. Early signs of recovery are emerging in key sectors, but it is essential to maintain momentum and ensure stability moving forward.”

Malik said the PM had instructed all ministries to take decisions that serve the country’s long-term interests. “We are creating awareness and moving forward with a clear and focused strategy,” he added.

He noted that both downstream and upstream sector issues are being addressed by the PM and the petroleum ministry. “Concrete steps are being taken to provide relief to people in the upcoming budget,” he said.

Commenting on the circular debt issue in the energy sector, the minister acknowledged the challenge but said the government remained committed to resolving it, despite constraints imposed by the IMF.

“There are two main objectives in tackling circular debt in the gas sector,” he explained. “One is to stop its further accumulation, and the other is to improve recoveries and reduce expenditures.”

Petroleum sector matters were also discussed in detail during the visit, in addition to the gas industry.SSGC Acting Managing Director Amin Rajput, responding to media queries related to the company’s services, said that the standard response time for resolving customer complaints is 48 hours -- except where road-cutting permissions are required.

Addressing concerns over PUG (prohibited unaccounted-for gas) charges in gas bills, Rajput said these were linked to slow metres and were calculated under a framework approved by the Oil and Gas Regulatory Authority (Ogra).

He also highlighted the scale of SSGC’s infrastructure, noting that the company’s pipeline network spans over 55,000 kilometres. A large portion of this network has aged, leading to operational issues. “Previously, the company rehabilitated around 150km of pipeline annually. That number has now increased to 2,500km per year, resulting in significant improvements in gas supply and a reduction in line losses,” he said.