SSGC Board directed to formulate reform strategy with special focus on UFG control

August 27, 2026 (MLN): The government has directed the Board of Sui Southern Gas Company Limited (SSGCL) to develop a comprehensive strategy and sustainable business model, with special focus on controlling unaccounted-for-gas (UFG), to transform the company into a financially viable organization while keeping public service as the foremost priority.

The directive was issued by Federal Minister for Petroleum Ali Pervaiz Malik, who chaired a meeting with the Chairman and Board of Directors, Managing Director, and senior management of SSGCL in Karachi, convened to review the company's performance, key achievements, operational challenges, and future reform priorities.

The Chairman SSGCL Board welcomed the Federal Minister, while the Managing Director briefed the meeting on the company's milestones, achievements, and challenges, said a press release issued.

The management noted a significant improvement in the company's gas distribution system, with UFG reduced by approximately 57% in volumetric terms.

The meeting was informed that there is no gas load shedding for K-Electric, industrial consumers, and fertilizer plants, while domestic consumers are being provided gas three times a day.

The Minister highlighted that gas prices have not been increased over the past year, while the rise in gas circular debt has nearly been arrested, marking important progress toward stabilization of the gas sector.

He said the existing system of gas subsidies through pricing slabs needs to be revisited, and stressed the need to transition toward a single fair gas price for all consumers, with vulnerable segments protected through targeted social protection programmes.

He noted this transition would spur greater economic activity while curbing the migration of consumers to alternative fuels.

The Minister urged the SSGCL Board to formulate a comprehensive business reform strategy aimed at making the company self-sustaining, improving operational efficiency and HR capabilities, reducing losses and gas theft, strengthening revenue recovery, and ensuring better utilization of resources.

Secretary Petroleum, during the meeting, emphasized that the Board operates independently in line with the spirit of the State-Owned Enterprises (SOE) Act, and said the Board should exercise its mandate and take all measures necessary 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 building 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 examine the province's challenges, describing it as a positive step toward addressing longstanding issues in the region.

The Minister directed that gas supply issues in Balochistan be resolved on a priority basis, alongside addressing technical challenges, infrastructure constraints, and gas theft, stressing the need for sustainable solutions to improve gas availability and service delivery in the province.

He added that public service must remain the top priority in all operational, financial, and strategic decisions, while pursuing reforms to ensure the company's long-term sustainability.

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