Pakistan’s Energy Sector Under Mounting Pressure

Pakistan’s gas sector is now burdened with an alarming Rs3.2 trillion circular debt, a figure that has sparked serious concern among lawmakers and industry experts. This growing financial strain highlights deep-rooted inefficiencies across the energy supply chain, threatening both consumers and the stability of the national economy.

Parliamentarians recently warned that unchecked losses at state-run utilities could eventually collapse the system. With rising debt levels, the sector faces mounting challenges in maintaining operations, while consumers risk bearing the brunt of higher costs.

The debt crisis is not just about numbers—it reflects structural weaknesses in management and outdated infrastructure. Companies such as Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), Sui Northern Gas Pipelines Limited (SNGPL), and Sui Southern Gas Company (SSGC) are struggling with ineffective financial strategies. These inefficiencies have created severe cash flow constraints, further aggravating the situation.

Experts emphasize that without urgent reforms, the gas sector could destabilize the broader energy industry. Transparent governance, modernized infrastructure, and improved financial management are critical to reversing the trend. Policymakers are being urged to act swiftly to prevent the debt spiral from worsening and to safeguard consumers from additional financial pressure.

The Rs3.2 trillion circular debt serves as a stark reminder of the urgent need for structural reforms in Pakistan’s energy sector. Addressing inefficiencies today could be the key to ensuring a sustainable and reliable energy future for the country.