ECC Chairman Slams Govt-Nominated Directors of SNGPL, SSGC
Staff Report
Islamabad: Poor government of government nominated directors in gas utilities-SNGPL and SSGC has irked Chairman of the Economic Coordination Committee (ECC) and finance minister who has lashed out at governance issues in these gas firms.
Secretary Petroleum Momin Agha is also on the board of SSGC who is directly responsible for bringing improvement in the SSGC as the company is under administrative control of Petroleum Division. Additional secretary finance ministry Sara Najeeb is also on the board of SNGPL and SSGC.
But the finance minister is very depressed from the performance of government nominated directors and want these directors to play their roles in bringing improvement of these companies.
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Concerns were recorded in the latest meeting of the Economic Coordination Committee (ECC) over growing misgovernance in gas firms.
The boards of directors of SNGPL and SSGC have long been filled through political appointments. These politically driven boards have failed to deliver structural improvements in company operations.
Gas companies are posting sustained losses amounting to billions of rupees annually.
These losses are largely attributed to unchecked gas theft, technical leakages, and poor corporate oversight.
The Oil and Gas Regulatory Authority (OGRA) allows part of these losses to be recovered through consumer gas tariffs. This regulatory cushion has transferred the cost of inefficiency to end users.
ECC members questioned why BODs have failed to curtail theft and technical losses despite having full authority.
The Finance Minister, who also chairs the ECC, stressed the need for qualified professionals on utility boards. He called for a governance overhaul to ensure the boards actively contribute to operational turnaround.
The issue came up during deliberations on gas price revisions for FY2025–26.
The Petroleum Minister briefed the forum that raising fixed charges was essential to contain circular debt.
Pakistan has committed to reducing circular debt under its IMF structural benchmarks.
The minister clarified that only fixed charges would increase for residential consumers, not the tariff.
He said the hike in fixed charges would not materially alter consumption behavior.
The ECC was told that recovery measures must be applied immediately to stabilize financial flows.
Subsidy support for List-C consumers was also proposed during the session.
The Petroleum Division sought approval to submit a revised summary based on the PM Office recommendations.
The revised gas pricing summary included adjustments across domestic slabs and industrial categories. The division proposed that OGRA be advised to utilize any revenue surplus to offset prior-year circular debt.
It also requested permission for OGRA to carry forward any revenue deficit into the next tariff determination cycle.
This request aligns with the provisions of the Natural Gas Tariff Regime 2018.
Further, the Petroleum Division urged the ECC to direct amendments in OGRA Ordinance 2002.
The goal is to enable quarterly tariff adjustments, ensuring timely recoveries before December 2025’s biannual review.
The ECC reviewed all points and gave approval to the proposed gas pricing mechanism.
The revised tariff will be effective from July 1, 2025.
