The Senate Standing Committee on Petroleum recently held a meeting during which shocking revelations regarding the gas industry and Pakistan State Oil (PSO) were made.
The committee brought attention to the enormous circular debt problem that the gas industry is facing. In an unsettling revelation, PSO’s managing director revealed that the organization is on the verge of collapse as a result of an unpaid debt of Rs 800 billion from bankrupt government enterprises.
In a thorough report, Ministry of Petroleum officials stated that the main reason the circular debt has grown to Rs 2,897 billion is because the gas pricing was not raised between 2013 and 2023.
There is a Rs 800 billion annual discrepancy in the official purchase and sale prices of gas.According to the briefing, three significant businesses owe an astounding Rs 2,752 billion, which makes up 95% of all circular debt.
In particular, PSO owes Rs 816 billion, Pakistan Petroleum Limited (PPL) owes Rs 803 billion, and Oil and Gas Development Company Limited (OGDCL) owes Rs 1,133 billion.
