ISLAMABAD – Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Tuesday said gas utilities are ignoring the economic interests of the country to maximize their profits.
Gas utilities are earning up to 18 percent profit but showing losses to the tune of billions of rupees per annum which is not justified, he said.
Shahid Rasheed Butt said that if SSGC and SNGPL are at loss then why they are so much interested in expanding their network.
A loss-making business is not extended but closed or trimmed but it is other way around when it comes to gas companies, he observed.
The business leader noted that expansion in the gas network will increase line losses, leakage and theft therefore this job should be handed over to the private sector.
He said that the gas sector circular debt has already reached to Rs532 billion and further increase in it through meaningless expansion is not in the national interest as the debt can become a problem like power sector circular debt.
Mr. Butt said why gas companies are interested in network expansion if there is a shortfall of gas in the country as SSGC and SNGPL has already started efforts for an increase of 220 percent in the gas price which will increase the burden on consumers and damage economy.
The efficiency of the gas companies can be judged from the fact that now the country is also facing severe gas load shedding in the summers, he observed.
Gas companies have been discouraging the private sector for years but gas problems cannot be resolved unless the private companies are allowed to fully participate in this critical sector which will also help improve the working of state-run gas companies.
