KARACHI: The Senate Standing Committee on Petroleum held a pivotal meeting at the Pakistan State Oil (PSO) headquarters on Thursday to address the pressing challenges facing the country’s energy sector.
PSO Managing Director Syed Muhammad Taha emphasized the urgency of empowering the company’s board of management with regulatory powers to ensure its sustainability and competitiveness. Highlighting the severity of the circular debt crisis, he revealed that 14% of PSO’s circular debt equates to its EBITDA for FY23. He further outlined critical issues, including trapped equity, price competition, investment stagnation, and franchise exploitation. Mr. Taha called for complete commercial autonomy, stating, “PSO’s strategic role as the largest buyer of furnace oil and LNG has placed a massive circular debt burden, eroding profits and stifling growth.”
Sui Southern Gas Company Ltd (SSGC) Acting Managing Director Muhammad Amin Rajput discussed the impact of curtailed gas supply for captive power generation, emphasizing the need for collaborative efforts to mitigate adverse effects on the industrial sector.
Senator Quratul Ain Marri stressed the importance of policies that ensure both sustainability and the growth of public sector entities, while Committee Chairman Senator Umar Farooq called for immediate action, stating, “The challenges faced by PSO, SSGC, and Pakistan Petroleum Ltd demand urgent and sustainable solutions. This committee remains committed to fostering collaboration and reform in the energy sector.”
