Circular debt in gas sector rises to Rs250bn: minister

ISLAMABAD: Power Division Minister Omar Ayub Khan has said that circular debt in the gas sector has risen to Rs250 billion which can only be reduced by taking all stakeholders on board.

Addressing a news conference along with Prime Minister’s Special Assistant on Energy Nadeem Babar on Thursday, the minister said if the Sindh government grants the Right of Way (RoW) for a new pipeline of 17km, then additional 150 million cubic feet gas per day can be provided to the province.

He said that the main cause behind gas shortage in Karachi is refusal of the Sindh government to give RoW for a new Sui Southern Gas Company’s pipeline.

Speaking on the occasion, Nadeem Babar said the shortfall of gas in Sindh will affect the business community of Karachi, hence all-out efforts are being made to resolve the issue. He said that Sindh may face a gas shortfall of over 400MMCFD during the upcoming winter season, as the SSGC did not have enough gas reserves to meet the consumers’ demand.

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