News & MediaRs1.55tr unpaid by gas utilities deepens liquidity crisis in upstream gas sector
Rs1.55tr unpaid by gas utilities deepens liquidity crisis in upstream gas sector
October 11, 2025
A critical situation is emerging in the gas sector of Pakistan since the government-owned gas companies have not cleared Rs 1.55 trillion to the national oil and gas reserves, thereby worsening the situation of a lack of gas in the country.
A substantial amount is overdue, with SSGCL and SNGPL alone contributing largely to this, and 64% (Rs 991 billion) is overdue for more than a year despite having a payment term of 30 days.
Resulting from the above effects, gas production has diminished to 2,684 MMCFD, compared to nearly 4,000 in the previous years. Organizations have reduced their drilling activities, postponed projects, since they do not have money.
Yet this situation came to pass in spite of five gas price increases since 2023 because revenues are lost through costs of inefficiency, as well as circular debt.
As of September 2025, SSGCL owes Rs 826 billion and SNGPL owes Rs 721 billion to the upstream companies. This amount constitutes a major factor that has lowered the confidence levels of the investors and disrupted gas supply in the country.
Industry associations have warned that, unless immediate reforms and enforcement of payment terms occur, Pakistan could be facing a long-term energy crisis.
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