The Auditor General of Pakistan (AGP) has flagged serious financial lapses at the state-run Oil and Gas Development Company Limited (OGDCL), with outstanding receivables swelling to Rs 635 billion by the end of fiscal year 2023-24.
According to the audit, more than Rs 350 billion of these dues have been pending for over a year, mainly due to circular debt involving SNGPL, SSGC, Uch Power Private Ltd. and Attock Refinery. Despite agreements requiring payments within 30 to 60 days, many buyers failed to clear their bills. OGDCL reported recoveries of Rs 153.7 billion up to November 2024, but auditors noted the issue has persisted for years, previously reported at Rs 321 billion in 2019-20 and Rs 577 billion in 2023-24.
The report also pointed to irregularities in the Benazir Employees Stock Option Scheme (BESOS). OGDCL had transferred 432 million shares worth Rs 43 billion to an employee fund in 2009. Although a Supreme Court ruling in 2020 declared the scheme unconstitutional and ordered the return of shares and dividends, auditors found that 266 million shares and unpaid dividends of Rs 41 billion were not transferred back to the federal treasury. Only Rs 20 billion was deposited in September 2024, four years late.
Another lapse involved a contract with Siemens Pakistan, where OGDCL failed to enforce penalties for supply of wrong and short parts for gas turbines. This resulted in an undue benefit of about Rs 118 million to the contractor.
The AGP further reported revenue losses of around Rs 13 billion due to forced gas curtailment between 2021 and 2024. Supply constraints at SNGPL forced OGDCL to cut production at key fields, including Qadirpur, Nashpa and Chanda, causing both financial losses and risks to long-term well productivity.
