SSGC Reforms: Petroleum Minister Pushes Plan to Cut Gas Losses and Theft

KARACHI, August 27, 2026: Federal Minister for Energy (Petroleum Division) Ali Pervaiz Malik has directed the Sui Southern Gas Company (SSGC) Board and management to accelerate reforms aimed at reducing gas losses, improving efficiency and strengthening the company’s finances.

The minister held detailed discussions with the SSGC Board and senior management in Karachi to review the company’s performance, operational challenges and future reform priorities.

Petroleum Secretary Hamed Yaqoob Sheikh accompanied Malik during the meeting.

Focus on Gas Losses and Recovery

Malik asked the SSGC Board to develop a sustainable business model that reduces Unaccounted-for-Gas (UFG), improves operations, recovers outstanding debts and tackles gas theft.

He said the reforms should make SSGC financially sustainable while keeping public service at the centre of its operations.

SSGC Managing Director Amin Rajput briefed the minister on the company’s recent progress and ongoing challenges. He highlighted improvements in the gas distribution network, including a pipeline rehabilitation programme.

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According to Rajput, SSGC has reduced UFG by about 57% in volumetric terms over the past eight years.

Senior management also updated the minister on various projects and operational initiatives currently underway.

Gas Supply and Consumer Services

The meeting reviewed the current gas supply position across different consumer categories.

Officials informed the minister that industrial consumers and fertiliser plants were not facing gas load shedding.

Domestic consumers, meanwhile, were receiving gas according to the load management schedule during meal times three times a day.

Malik stressed that public service should remain the top priority in SSGC’s operational, financial and strategic decisions.

He also called for stronger human resources, better use of company assets, lower losses and improved revenue collection.

Government Reviews Gas Pricing System

The minister said gas prices had remained unchanged for the past year. He added that the increase in gas circular debt had almost stopped, describing the development as progress towards stabilising the gas sector.

Malik said the existing system of gas subsidies through pricing slabs needed a review.

He argued that Pakistan should gradually move towards a single and fair gas price for consumers. However, he said the government must protect vulnerable groups through targeted social protection programmes.

According to the minister, such a transition could encourage greater economic activity while creating a more sustainable gas market.

The government is also working with the World Bank on comprehensive gas sector reforms. The initiative aims to address structural weaknesses and build a more efficient and financially sustainable gas sector.

Priority for Balochistan

The SSGC Board welcomed the formation of a special committee on UFG losses in Balochistan under the Deputy Prime Minister.

The committee will examine the province’s longstanding gas-related challenges and explore solutions.

Malik directed officials to address gas supply problems in Balochistan on a priority basis.

He called for action on technical difficulties, infrastructure limitations and gas theft. The minister also stressed the need for sustainable measures to improve gas availability and service delivery across the province.

Petroleum Secretary Hamed Yaqoob Sheikh emphasised that the SSGC Board operates independently under the State-Owned Enterprises (SOE) Act, 2023.

He said the board should take all necessary measures to improve efficiency, strengthen the company and secure its long-term sustainability.

The meeting brought together senior SSGC officials, board members and representatives of the Petroleum Division to review the company’s performance and set priorities for the next phase of reforms.