Ministry of Finance Raises Alarm Over Financial Systems of PSO & Sui Southern

The Ministry of Finance has raised serious concerns about the financial systems of Pakistan's major oil and gas companies, including Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDCL), Sui Southern Gas Company (SSGC), and Sui Northern Gas Pipelines Limited (SNGPL). According to a report the ministry has declared that these companies' financial systems are outdated and ineffective. This situation is creating significant challenges for these companies, making it difficult for them to function efficiently and meet their financial obligations.

Sources within the Ministry of Finance have pointed out that the infrastructure of these oil and gas companies is old and inefficient. As a result, the companies are struggling to operate at full capacity and are facing many operational and financial difficulties. One of the main issues that have been highlighted is the problem of unpaid bills, especially for SNGPL and SSGC. These unpaid dues have weakened the financial positions of these companies and increased their reliance on government support to stay afloat. The situation is further complicated by the issue of circular debt in the energy sector, which has worsened the cash flow problems for these companies. The mounting unpaid dues have created liquidity issues, making it harder for the companies to meet their day-to-day financial needs.

The Ministry of Finance has emphasized that the increasing liabilities of these companies are having a negative impact on their overall economic stability. As these companies become more dependent on government support, their ability to manage their finances effectively has been severely limited. In addition to the financial challenges, the companies are also facing operational difficulties due to outdated technology. The old systems in place have led to lower production and higher operational costs, further impacting the companies' ability to generate revenue.

The gas transmission and distribution networks are also facing significant losses due to inefficiencies in the system. This has caused the companies to lose revenue, and they are unable to operate at their full potential. According to sources, the only way to reduce these revenue losses and improve efficiency is through better business planning. It is also suggested that improving the financial systems of these companies could help address the ongoing issue of circular debt, which continues to create financial problems for the energy sector as a whole.

The government is urged to take action in order to strengthen the financial systems of these companies and reduce their dependence on government assistance. Improving the infrastructure and upgrading technology would help reduce production costs and increase efficiency. By addressing these financial and operational challenges, these companies could become more self-sufficient and reduce their reliance on external financial support. This would be a positive step in improving the overall stability of the oil and gas sector in Pakistan, which is crucial for the country’s economic growth.